On Monday, the USD/JPY bounced off the resistance line that can be drawn by connecting the January high levels. Afterwards, the pair found support in the hourly simple moving averages.
In the meantime, a declining wedge pattern was charted on the rate's hourly candle chart.
Economic Calendar
On Wednesday, January 27, the Federal Reserve is going to unveil its monetary policy plans by publishing the FOMC Statement at 19:00 GMT.
On Thursday, January 28, the US Advance GDP data is set to be released at 13:30 GMT. Also, the US Unemployment Claims data will be published at the same time.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
The rate has been trading in a declining wedge pattern since January 10.From a theoretical point of view, it is likely that the exchange rate could reverse south from the upper trend line of the pattern in the short term. Note that the rate could decline to the support level—the weekly S1 at 103.42.
Meanwhile, note that the currency pair could gain support from the 55-, 100– and 200-hour SMAs, as well the 103.60/103.80 range. Thus, a breakout north could occur, and the pair could target the 104.10 mark.
Hourly Chart
On the daily candle chart, the rate is under pressure of the 55-day moving average near 104.00
Therefore, we can assume that the rate could decline in the medium term. Note that the rate could gain support at the 103.00 area.
Daily chart
Since Friday, on the Swiss Foreign Exchange around 57% of volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 52% to buy.