During Tuesday's trading session, The US Dollar surged by 55 pips or 0.51% against the Japanese Yen. The currency pair breached the weekly R1 at 108.73 on Tuesday.
During the Asian trading session, the exchange rate has been trading near the upper line of an ascending channel pattern and was set for a breakout.
Economic Calendar
On Wednesday, all of the markets will move due to the release of the US Federal Reserve Federal Funds Rate at 18:00 GMT. The USD/JPY has moved 7.8 to 34.5 pips on the announcement since September 16.
On Thursday, at 12:30 GMT, the US Advance GDP will be released. This event has caused USD/JPY move only from 6.0 to 21.1 pips.
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USD/JPY short-term daily review
Despite the breakout had occurred, an expected surge towards the 109.20 area did not happen.As the currency exchange rate bounced off the resistance level at 109.05, it might make a brief retracement towards the 108.40 level.
Hourly Chart
USD/JPY daily chart's review
The rate has found support at the 55-day simple moving average at the 108.00 mark on its daily candle chart on Tuesday and passed the 50% Fibonacci retracement level.Daily chart
On Wednesday, traders on the Swiss Foreign Exchange were 61% short on USD/JPY. Since Monday, the short volume has been rising starting from 53%.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 63% to buy.