The decline of the USD/JPY that was caused by the Bank of Japan continued after retracing back up to the resistance of the 55 and 100-hour SMAs. Eventually, a low level was reached at 109.80, from where another surge started.
By the middle of Wednesday's trading, the surge had stopped, as the rate was being squeezed in between hourly simple moving averages.
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 CalendarUSD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tested the lower boundary of the medium-term ascending channel at 109.80. During Wednesday morning, the rate was testing the support provided by the 200-hour SMA at 109.96.Hourly 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.