After the decline, the rate started to consolidate in the 147.15/147.50 range. The rate is waiting for the Federal Reserve rate announcement on Wednesday at 19:00 GMT. The event will set the course of the pair for the next couple of months.
Economic Calendar
On Wednesday, the top event of them all is set to take place. The release of the US Federal Reserve Federal Funds Rate and the FOMC Statement at 19:00 GMT. Afterwards, at 19:30 GMT, the head of the Federal Reserve Jerome Powell is set to host a press conference.
Note that the ADP Non-farm Employment Change publication is also scheduled for Wednesday. It is most likely that I won't cause an impact, as the markets will wait for the Fed rate.
On Thursday, the US ISM Manufacturing Purchasing Managers Index is set to be published at 15:00 GMT. A big deviation from the forecast could cause a market reaction
On Friday, at 13:30 GMT, the US Employment data sets will be released and they are set to impact the market. The release consists of Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings month on month difference.
USD/JPY hourly chart analysis
In regards to the near term until the event, the pair could recover and face the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point in the 147.65/147.85 range. Above these levels, the 148.00 level might act as resistance.On the other hand, a decline is set to look for support in the major support range at 146.65/147.10, the 147.00 mark and the weekly S1 simple pivot point at 146.97.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the USD/JPY rate is above the 100-day simple moving average and the 1998 high of 147.60. Both of these levels appear to be acting as support.Daily chart
On Monday, trader open position volume showed that Dukascopy traders were 72% long.
Meanwhile, pending orders in the 100-point range around the rate were 58% to buy the USD/JPY.
By mid-Tuesday, trader positons were 73% long and orders were 52% to buy.