On Wednesday, the USD/JPY was testing the resistance formed by 55-, 100- and 200-hour SMAs, as well the Fibo 38.20% and the weekly PP.
If the given resistance cluster holds, it is likely that a reversal south could occur in the nearest future.
Economic CalendarThis week there is only one event that could affect the USD/JPY pair.
On Thursday, the US Durable Goods Orders data will be published at 12:30 GMT.
Read More: 14.10-18.10 Event Historical Reactions
USD/JPY short-term daily review
On Tuesday, the USD/JPY currency pair declined to the lower boundary of the falling wedge pattern at 108.30. During today's morning, the pair reversed north.Given that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs, it is likely that the rate could trade downwards within the given pattern in the nearest future.
It is unlikely that the currency pair could decline lower than the 108.28 mark, as it could be supported by the lower pattern line.
On the other hand, it is likely that the US Dollar could trade sideways against the Japanese Yen in the nearest future, trying to surpass the given resistance.
Hourly Chart
On the daily candle chart, the low level of October 3 has provided with a reference point for drawing simple trend patterns. Dukascopy Analytics added an ascending channel pattern. This pattern could guide the rate higher until the end of the year.
Meanwhile, the rate surpassed the 38.20% Fibonacci retracement level at 108.43 and is testing the 200-day moving average.
Daily chart
Read More: Technical Analysis
Swiss traders are neutral
On Wednesday, 53% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up orders were almost neutral. Namely, in the 100-pip range 51% of pending orders were to buy and 49% were to sell.