In general, another test of the low level of 106.60 was expected.
Economic Calendar On Wednesday, the US Federal Reserve Meeting Minutes are set to be published at 18:00 GMT. Since February the event has caused moves from 7.7 to 15.3 base points.
On Thursday, the US CPI will be released at 12:30 GMT. The event has caused moves from 12.1 to 28.4 pips since May.
Meanwhile, next week's notable event overview and historical data tables have been published. Click on the link below to see the article with the data.
Read More: 07.10-13.10 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair reached the upper boundary of the falling wedge pattern at 107.44. During Tuesday morning, the pair reversed south from the line.From a theoretical point of view, it is likely that some downside potential could prevail in the market, as the exchange rate should target the lower pattern line located circa 106.50.
It is unlikely that some upside potential could prevail in the market, as the currency pair is pressured by the 55– and 100-hour SMAs, located circa 107.00. Also, it is unlikely that the pair could drop lower than the monthly S1 at 106.40.
Hourly Chart
On the daily candle chart, the channel up pattern has been broken. The rate has clearly went away from it and the surge that was going one since late September is over.
Meanwhile, take into account that the 55-day simple moving average was also pierced, indicating that is not likely to impact the currency exchange rate in the near term future.
Daily chart
Read More: Technical Analysis
Swiss traders long USD/JPY
On Tuesday, 60% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were slightly bullish. Namely, in the 100-pip range 55% of pending orders were set to buy and 45% were to sell.
Previously, 53% of orders were to sell.