USD/JPY approaches major resistance zone

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The surge of the USD/JPY continues. Mid-Wednesday the currency pair passed above the combined resistance of the weekly R2 and the 137.00 mark. It was expected that the rate could soon reach for the May high level zone at 137.50/137.75.

Economic Calendar



On Wednesday, at 18:00 GMT, the FOMC Meeting Minutes publication could provide more insight into the Federal Reserve's policy.

On Thursday, the US Preliminary GDP and Unemployment Claims releases at 12:30 GMT are highly likely going to impact the USD.

On Friday, at 12:30 GMT, the Core PCE Price Index is bound to impact financial markets through the US Dollar.

Hourly Chart
A move above 137.75 could be slowed down by the 138.00 mark or the weekly R2 simple pivot point at 138.35. Higher above, note that round price levels might turn into resistance at 138.50, 139.00 and 139.50. The 140.00 mark is set to have more impact than these levels.

However, a potential decline of the US Dollar against the Japanese Yen is expected to look for support in the weekly R2 and the 137.00 mark. Further below, note the 136.50 level, the weekly R1 simple pivot point at 136.34 and the 50-hour simple moving average.

In addition, note that we have marked a channel up pattern that has guided the rate up since May 11. It could be the case that the trend lines of the pattern act as support and resistance.

USD/JPY daily chart's review

On the daily candle chart, the pair has retraced to find support in the 50-day simple moving average near 133.50. In addition, note the 100-day SMA near 133.00. Meanwhile, the rate ignores the 200-day SMA.

In the case of a resumption of the broader surge, the rate could be stopped by the 138.20/139.40 range.
Daily chart



Traders are still short

Despite the ongoing surge, on Wednesday, on the Swiss Foreign Exchange, traders were 73% bearish, 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 52% to sell the USD against the JPY.

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