In general, the rate was expected to decline as soon as the resistance of the 100-hour simple moving average approaches.
Economic Calendar
On Thursday, at 12:30 GMT the US Preliminary GDP is scheduled to be published. The event has caused moves on USD/JPY charts from 2.8 to 19.4 pips since February.
USD/JPY short-term daily review
By looking at the hourly candle chart, it can be assumed that the rate is set to trade sideways until the resistance of the 100 and 200-hour simple moving averages approaches and pushes the currency exchange rate down.That is from a technical analysis perspective. Note that in the meantime trade disputes are taking place between China and the US causing runs to safety in the form of sudden USD/JPY drops.
In the meantime, also Japan and South Korea are conflicting on trade.
Hourly Chart
On the daily candle chart, the pair trades below the daily simple moving averages. It is an indicator of the rate being oversold.
In the meantime, note that during the most recent fundamental drop the rate pierced the lower trend line of a large scale descending channel pattern. The event hints that fundamental event are capable of breaking the pattern.
Daily chart
Read More: Technical Analysis
Traders remain long
On Wednesday, 67% of USD/JPY open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were bearish. Namely, in the 100-pip range 56% of pending orders were set to sell and 44% were to buy.