The USD/JPY has found support above the 103.50 mark and surged above the hourly simple moving averages, the trend line of the descending pattern and a pivot point.
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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.
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USD/JPY short-term daily review
On Wednesday, the USD/JPY had found support in the 103.60 level and surged. By the middle of the day's trading hours, the rate had reached the 103.80 level and passed various resistance levels.If the 103.80 level fails to keep the pair down, the rate would test the resistance zone of the 103.85/103.95 levels. In the case of this zone failing to provide resistance, the rate could reach for a pivot point at the 104.18 mark.
On the other hand, if the resistances hold, the pair would trade sideways between the 103.80 level and the technical support levels that were located from 103.75 to 103.70.
Hourly Chart
On the daily candle chart, the rate is under pressure of the 55-day moving average near 103.90.
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
On Wednesday, on the Swiss Foreign Exchange 64% of open position volume was in long positions.
On Tuesday, the sentiment changed, as 60% of volume was long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 54% to buy.