The attempts to pass the resistance of the 109.25/109.35 zone eventually failed.
Afterwards the rate started a decline, which passed the support of hourly simple moving averages and the weekly simple pivot point before reaching the 108.80 level. The 108.80 mark provided support, which resulted in a recovery.
Economic Calendar
On Wednesday, the US Federal Reserve is set to publish a FOMC Statement at 18:00 GMT and announce the Federal Funds Rate. This event is bound to set the tone for the whole global monetary policy. The USD/JPY has moved from 7.8 to 26.6 base points since November 5, 2020 on the announcement.
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
At mid-day on Wednesday, the rate was located near the 109.00 level. It could look for support for a surge in the 100-hour SMA near 108.97. If the SMA fails to provide support, it could reach for the support zone near 108.80.On the other hand, any surges would face the resistance of the 109.25/109.35, which has kept the rate down throughout March.
Hourly Chart
On the daily candle chart, the rate could eventually reach the 61.80% Fibonacci retracement level at the 109.83 level. This retracement level stopped the rate's early June's sharp recovery and forced the USD/JPY into continuing its large scale decline.
Daily chart
On Wednesday, traders were 72% short on USD/JPY. On Tuesday, the sentiment was 71% short.
The Swiss Foreign Exchange open positions have been mostly short for more than two weeks. It appears that traders expect a larger retracement back down.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 52% to buy.