By the middle of Thursday's London trading hours, the USD/JPY had hit the low level of 109.50.
In addition, during the decline that has been occurring since the Bank of Japan announcement on Tuesday the pair has passed the lower trend line of a channel up pattern.
Japanese Yen Appreciated on Raised Growth Forecast
On Tuesday, January 21, the Japanese Yen appreciated 45 pips or 0.41% against the US Dollar.
The advance was driven the BOJ Outlook Report release. According to the report, the Bank of Japan raised its economic growth forecasts, as well became carefully optimistic about the global outlook.
Meanwhile, other major central banks are only reconsidering their monetary policies.
Economic CalendarThe week's scheduled event historical data tables have been published. Click on the link below to read the article.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair passed the support of a channel up pattern near 109.80 and the weekly S1 pivot point at 109.71.The exchange rate could continue to trade downwards within the following trading session. Note that the rate could gain support of the monthly R1 pivot point at 109.47. If the monthly support level holds, it is likely that a reversal north could occur in the nearest future.
However, if the weekly S1 holds, it is likely that the US Dollar's surge would be stopped, and the rate could consolidate against the Japanese Yen in the short run.
Hourly Chart
On the daily candle chart, the rate appears to be consolidating in the aftermath of the early January high volatility and surge.
In the meantime, note that the rate has left below it the daily simple moving averages. It signals that the rate is overbought.
Daily chart
Since Tuesday, 71% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 78% of pending orders were to sell and 22% were to buy. The orders had not changed since Monday.