As expected, the USD/JPY reached the 109.00 level. Moreover, the resistance levels at that price level were passed.
Although, the passing of 109.00 did not result in a surge up to the 109.39 level, as it was forecast on Tuesday.
The Institute for Supply Management (ISM) released the US ISM Non-Manufacturing PMI survey results, which came out better-than-expected of 54.7 compared with the forecast of 53.5.
Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee commented: "According to the NMI, 13 non-manufacturing industries reported growth. The non-manufacturing sector had an uptick in growth after reflecting a pullback in September. The respondents continue to be concerned about tariffs, labor resources and the geopolitical climate."
Economic Calendar
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair reached the psychological level at 109.20. During Wednesday morning, the pair was testing the weekly R1 at 109.04Hourly Chart
On Wednesday, on the Swiss Foreign Exchange USD/JPY open position volume was almost neutral. 52% of open volume was short and 48% was long.
Meanwhile, trader set up orders were majorly bearish. Namely, in the 100-pip range 70% of pending orders were to sell and 30% were to buy.
The orders were 79% to sell on Tuesday.
In general, it could be observed that traders are expecting a reversal that would be followed by a decline.