In the aftermath of touching the 102.60 level, the USD/JPY recovered on Wednesday morning. By the middle of the day, the rate was testing technical resistance levels near 102.80/102.90.
Future forecasts depended on whether or not the technical levels and the 103.00 mark provide resistance.
Economic Calendar
On Wednesday, the FOMC Meeting Minutes are set to be released at 19:00 GMT. Expect a minor move from 3.7 to 7.3 pips. Note that there was an anomaly of 10.5 pips in August.
On Thursday, at 13:30 GMT, the US Unemployment Claims could cause a minor move on USD pairs and assets. In addition, on the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI results will be published.
The releases have caused moves, respectively, from 5.6 to 8.7 and 6.1 to 16.0 base points.
The week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT. This event has caused moves from 10.4 to 26.3 pips since August.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
Given that the exchange rate is pressured by the 55– and 100-hour moving averages, as well the weekly S1, it is likely that some downside potential could prevail in the market. Note that the rate could face the support level—the weekly S2 at 102.45.If the predetermined support holds, the currency pair could bounce off to re-test the given resistance. Otherwise, the pair could target the psychological level at 102.20.
Hourly Chart
On the daily candle chart, Dukascopy Analytics has marked the zone of the November and December low levels. The Monday's decline managed to pierce this support zone.
Daily chart
Since Monday, on the Swiss Foreign Exchange around 73% of volume was in long positions.
At mid-day on Wednesday, the sentiment had slightly changed, as 74% of open volume was long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 55% to buy.