On the USD/JPY charts this resulted in a crashing of the channel up pattern that had guided the rate before. By mid-Thursday, the rate had touched the 115.25 mark. Moreover, the pair faced no resistance.
Economic Calendar
This week, last notable events will be the Thursday 13:30 GMT release of the US Advance GDP, Durable Goods Orders and Unemployment Claims
USD/JPY short-term review
In theory, due to the lack of resistance, the pair should continue to surge higher. However, note that round exchange rate levels might stop the surge. Namely, the 115.50 mark and the weekly R2 simple pivot point at 115.58 might act as resistance.On the other hand, a decline would look for support in the 115.00 mark, before reaching the support of the weekly R1 simple pivot point at 114.65.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the event has accelerated the pair's recovery from the support of the 113.50 mark. Most recently the surge has moved above the zone of the 2017, 2018 and 2019 high levels at 114.35/114.75.In the case that the surge extends, on the daily candle chart, note the resistance of the November high at 115.50. Above that level, note the January 1 2022 high level.
Daily chart
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Traders are short
On Thursday, on the Swiss Foreign Exchange, traders were short, as 71% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 57% to sell.