The US Dollar surged by 50 pips or 0.46% against the Japanese Yen on Wednesday. A breakout occurred through the upper boundary of a descending channel pattern during Wednesday's trading session.
Economic Calendar
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USD/JPY short-term review
Given that a breakout has occurred, buyers could continue to drive the currency pair higher during the following trading session. The potential target for bullish traders would be near the weekly R1 at 110.63.However, the USD/JPY currency exchange rate could found resistance near the 110.40 regions in the shorter term.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the exchange rate breached the support of the 55-day simple moving average, which was located at the 109.80 level.Meanwhile, the USD/JPY currency exchange rate has found support at the 100- day SMA at 109.50.
Daily chart
Read More: Technical Analysis
Traders are short
On Thursday, traders on the Swiss Foreign Exchange were 71% short on the USD/JPY currency pair.
Meanwhile, SWFX traders set up pending orders in the 100-pip range around the currency exchange rate were 59% to sell.