As expected, the USD/JPY tested the 111.50 level for a third time and failed at passing it. On Wednesday, another attempt was expected.
In general, the rate was set to be pushed higher by the support of the 55 and 100-hour SMAs and the lower trend line of a channel up pattern.
Economic CalendarUSD/JPY short-term daily review
From a theoretical perspective, it is likely that the exchange rate could trade upwards along the lower boundary of the medium-term ascending channel. In this case the rate could exceed the 112.00 level.Hourly Chart
On Monday, 56% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Tuesday's GMT trading hours, the sentiment was 59% short, and on Wednesday, 64% were short.
In general, USD/JPY were expecting the rate to decline instead of surging above the 111.50 mark.