By the middle of Thursday's trading, the USD/JPY had reached the 112.00 level. Since the middle of Tuesday's flat trading, the pair had surged more than 2.25%.
The reasons for the surge were two sided. The US Dollar was gaining strength, as the US Dollar index had reached a historical high level. In the meantime, the Yen was losing value due to various fundamental reasons.
Japanese Yen Dropped 0.93%
During Wednesday, February 19, the Japanese Yen depreciated 0.93% or 103 pips against the US Dollar. Note that the Yen depreciated against other major currencies as well.
Analysts suggest that the Japanese Yen tumbled as the demand for it as for the safe-haven currency also decreased.
The Japanese economic growth is pressured by the decline of foreign visitors to the country due to the South Korean boycott and the coronavirus outbreak. Moreover, the Japanese financial organizations were forced to shut business operations in China due to the epidemics.
Economic CalendarUSD/JPY short-term daily review
On the hourly candle chart, all technical levels have been passed and the rate has no resistance. However, as the move is purely fundamental, the situation is not a surprise.Hourly Chart
Since Tuesday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 81% of pending orders were to sell and 19% were to buy.
Previously, the orders were 70% to sell on Wednesday.