Given that the pair is squeezed by 55-, 100- and 200-hour moving averages, it is likely that the US Dollar could consolidate against the US Dollar.
Economic Calendar
Today, the US Federal Reserve Meeting Minutes are set to be published at 18:00 GMT. Since February the event has caused moves from 7.7 to 15.3 base points.
On Thursday, the US CPI will be released at 12:30 GMT. The event has caused moves from 12.1 to 28.4 pips since May.
Meanwhile, next week's notable event overview and historical data tables have been published. Click on the link below to see the article with the data.
Read More: 07.10-13.10 Event Historical Reactions
USD/JPY short-term daily review
During Tuesday, the USD/JPY currency pair tried to surpass the resistance level formed by the weekly PP at 107.31. During today's morning, the pair was testing the given level.Note that the exchange rate is pressured by the 200-hour moving average, currently located at the 107.42 mark. Therefore, it is likely that bears could prevail in the market. A possible downside target is the psychological level at 106.80.
However, note that the currency pair is also supported by the 55– and 100-hour moving averages at 107.00. If the given support holds, the US Dollar could trade sideways against the Japanese Yen in the short run.
Hourly Chart
On the daily candle chart, the channel up pattern has been broken. The rate has clearly went away from it and the surge that was going one since late September is over.
Meanwhile, take into account that the 55-day simple moving average was also pierced, indicating that is not likely to impact the currency exchange rate in the near term future.
Daily chart
Read More: Technical Analysis
Swiss traders long USD/JPY
On Wednesday, 66% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were bullish. Namely, in the 100-pip range 60% of pending orders were set to sell and 40% were to sell.
Previously, 55% of orders were to sell.