Economic Calendar
On Wednesday, the rate is bound to move due to the release of the Federal Open Market Committee Meeting Minutes at 18:00 GMT.
On Thursday, the US quarterly Preliminary GDP data at 12:30 GMT is set to confirm or deny whether the United States have entered a recession. A recession is defined by two consecutive quarters of decline in the Gross Domestic Product.
Hourly Chart
If the US Dollar recovers against the Japanese Yen, it would have to pass the 128.20/128.30 zone and the technical levels located in it. A move higher might encounter resistance in the 128.50 mark and the 200-hour simple moving average. In addition, note the descending trend line, which connects the May high levels.
On the other hand, a decline of the USD/JPY could look for support in the 127.50 level, prior to reaching the 127.00 mark and the support zone that surrounds it.
USD/JPY daily chart's review
On the daily candle chart, the pair has clearly broken the channel up pattern, which guided the rate's surge from the low level of March 30.On May 16, Dukascopy Analytics marked the April and May high level zone as resistance and late April and recent May low levels as support. Namely, resistance is located at 131.20/131.40 and support is at 126.90/127.55.
Most recently, the rate's support zone was being approached by the additional technical support of the 50-day simple moving average.
Daily chart
On Monday, on the Swiss Foreign Exchange, traders were 635 short as that amount of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 66% to sell the USD against the JPY.