The USD/JPY was once again testing the resistance zone of 109.25/109.35, as the Federal Reserve mate a rate statement and monetary policy statement, which caused high volatility. Namely, since 18:00 GMT on Wednesday, the pair has been sharply moving between the mentioned resistance zone and the support of 108.80/108.75.
Economic Calendar
There are no more notable events scheduled for this week. On Friday, expect an update to the calendar section with the next week's event reviews.
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
If the pair eventually passes the resistance of the 109.25/109.35 zone, it would first test the resistance of the weekly R1 at 109.44 and afterwards the 109.80 mark, where the June high level is located together with the weekly R2 simple pivot point.On the other hand, a passing of the 108.80/108.75 support could result in a test of the weekly S1 simple pivot point at 108.51 and the 108.50 level. However, a previous piercing of the support zone did not result in an extended decline.
Hourly Chart
On the daily candle chart, the rate could eventually reach the 61.80% Fibonacci retracement level at the 109.83 level. This retracement level stopped the rate's early June's sharp recovery and forced the USD/JPY into continuing its large scale decline.
Daily chart
On Wednesday, traders were 72% short on USD/JPY. On Thursday, the sentiment was 71% short.
The Swiss Foreign Exchange open positions have been mostly short for more than two weeks. It appears that traders expect a larger retracement back down.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 53% to buy.