The surge, which was caused by the FOMC Meeting Minutes was consistent with the technical chart, as the rate bounced off the support of the 105.20 level.
Afterwards, the currency exchange rate was stopped by the 200-hour simple moving average at 106.23.
Economic Calendar
On Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. The event has caused minor moves throughout July.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
Since the rate bounced off the resistance of the 200-hour SMA at 106.23, the rate has traded sideways. The pair's sideways trading has been supported by the 106.00 level. In addition, the 106.00 was supported by the 100-hour SMA.In the near term future, the rate was expected to trade sideways until it is approached by the 55-hour simple moving average. The additional support of the SMA could cause a move upwards, which could break the resistance of the 200-hour SMA.
Hourly Chart
On the daily candle chart, the rate appears to be retracing back up to the resistance of the daily candle simple moving averages. Namely, the 55 and 100-day SMAs at 106.81 and 107.20.
Daily chart
On Thursday, traders of the Swiss Foreign Exchange were neutral, as 52% of all open position volume was short.
On Wednesday, the sentiment was 57% short.
Meanwhile, trader set up pending orders in the 100-pip range were 52% to buy.
Previously, the orders were 53% to buy.