At mid-day on Tuesday, the USD/JPY passed the support of the 200-hour simple moving average, which kept the rate up since the middle of Friday.
During the day's US trading hours, the rate was finding support in technical levels near 109.80. Support was being provided by the weekly S1 simple pivot point at 109.76 and the 61.80% Fibonacci retracement level at 109.83.
Economic Calendar
On Wednesday, at 19:00 GMT, the US Federal Open Markets Committee is set to publish its Meeting Minutes. The rate had the initial reaction of 3.8 to 10.5 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 daily review
In the case of the support levels holding, the pair should test the resistance of the 110.00 level. If this level fails to hold, the 200-hour SMA could provide resistance. In addition, note the cluster of technical levels in the 110.37/110.54 zone.On the other hand, a potential decline would have no support as low as the 109.20/109.40 zone. This zone provided resistance and support throughout March.
Hourly Chart
On the daily candle chart, next notable resistance cluster on the daily candle chart is the zone that surrounds the 112.00 mark. The zone consists of the 2019 and 2020 high levels. Zoom out to see how the rate acted near this level during both of those years.
Daily chart
On Tuesday, traders were 71% short on USD/JPY.
The Swiss Foreign Exchange open positions have been mostly short for a month. It appears that traders expect a larger retracement back down, despite the rate gaining new heights.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 60% to buy.