Economic Calendar
Watch the US ISM services PMI release on Wednesday at 14:00 GMT. Besides this release, there are no notable events scheduled that can impact the financial markets.
Hourly Chart
A move of the currency pair higher is expected to encounter resistance in the 148.00 or 148.50 levels. The rate has continued to respect round exchange rate levels throughout the 2023 surge.
In the meantime, a potential retracement of the US Dollar against the Japanese Yen would have to pass below the support of the weekly R1 simple pivot point at 147.54 and the 147.50 mark, before the pair reaches the August high level zone at 147.23/147.36.
USD/JPY daily chart's review
On the daily candle chart, on August 10, the rate reached the 145.00/146.00 range, which marks a zone that acted as resistance and support in the second part of 2022. At the end of June and early July of 2023 this range caused the July decline.Recently, the resistance zone was broken and the range has turned into support. Moreover, the pair is piercing the 1998 high level of 147.60.
Daily chart
On Tuesday, traders were bearish on USD/JPY, as 57% of open positions on the Swiss Foreign Exchange were short.
In the meantime, trader pending orders in the 100-point range around the current exchange rate are 58% to buy.
On Monday, positions were 60% short and orders were 58% to buy.