The medium scale decline of the USD/JPY from the 2017 November high level, which took place in a channel down pattern, appears to have ended. Namely, the currency exchange rate broke the resistance of the pattern, the 55, 100 and 200-hour simple moving averages, the weekly simple pivot point and the 114.00 mark, during the first half of Tuesday's European trading hours.
Economic Calendar
On Wednesday, at 12:30 GMT, the US Durable Goods Orders and Core Durable Goods Orders change data will be published. The rate has moved only 6.1 to 12.1 pips due to the release since May.
At 12:30 GMT, on Thursday, the US Advance GDP is expected to impact the value of the US Dollar. In addition, the US Unemployment Claims could also slightly impact the USD. The GDP has moved the USD/JPY from 6.0 to 14.6 pips, and the Claims from 5.9 to 12.2 base points.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
If the pair continues to surge, it could encounter resistance in the weekly R1 simple pivot point at 114.36. Afterwards, the previous week's high levels near 114.50 and the 114.70 level might serve as resistance.However, a decline of the USD/JPY might find support first in the 200-hour SMA and the 114.00 mark. Below the 114.00 level, the 100-hour SMA and the weekly simple pivot point at 113.89 might keep the rate up.
Hourly Chart
USD/JPY daily chart's review
The 114.40/114.75 zone is the resistance zone of the late 2017 and 2018 high levels. It appeared on Tuesday that the rate could once again test the resistance zone.Daily chart
On Monday, on the Swiss Foreign Exchange, traders were short, as 72% of open position volume was in short positions.
On Tuesday, 75% were short.
Meanwhile, on Monday, trader set up pending orders in the 100-pip range around the rate were 50% to sell.
On Tuesday, the orders were 68% to sell.