As expected, the USD/JPY currency exchange rate approached the 106.00 level. However, the rate touched the 105.94 level and reversed.
On Wednesday, the rate was trading above the technical support levels that were located from 104.57 to 103.78.
Economic CalendarOn Wednesday, March 11, the US CPI and Core CPI will be published at 12:30 GMT. The USD/JPY had moved at the time of the release from 6.4 to 16.3 pips since October 2019.
Meanwhile, the week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 09.03-13.03 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair consolidated in the 104.50 area. During Wednesday morning, the pair maintained its consolidation.Note that the exchange rate is supported by the 55-hour SMA, the weekly S1 and the monthly S2 in the 104.00 area. Thus, some upside potential could prevail in the market.
However, note that the currency pair would have to surpass the resistance formed by the 200-hour SMA, the weekly PP and the monthly S1 at 106.20. If the given level holds, it is likely that the pair could consolidate.
Hourly Chart
On the daily candle chart, Dukascopy Analytics have marked the 100.00 level. This is the low level of 2016. Since 2016 this level has not been approached by the USD/JPY.
Meanwhile, take into account that the 2017 and 2019 low level of 104.60 was passed on Monday.
Daily chart
Read More: Technical Analysis
Swiss traders are long on USD/JPY
On Wednesday, 61% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Previously, the sentiment was 59% long.