On Wednesday, the USD/JPY remained at the same level, where it was on Tuesday morning. However, the rate had made a sure upwards and bounced off the 103.65/103.70 zone.
By looking more into it, it was discovered that this zone provided the rate with support at the end of November and the start of December. In addition, it was shortly impacting the exchange rate each time that the rate approached it.
In the meantime, a supporting trend line that has kept the rate up since December 18 has been added to the chart. This line would have to be passed for the rate to decline to the previous low levels.
Economic Calendar
On Thursday, the US Durable Goods Orders and Core Durable Goods Orders data will be released. Minor moves of 3.3 to 11.6 pips have occurred on the announcements.
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
In the near term future, the rate is expected to trade between the resistance zone of 103.65/103.70 and the support of the recently added trend line.In the case of the resistance zone failing, the rate should reach for the resistance of the 104.00 level and the weekly R1 simple pivot point at 104.05. However, note that the rate could find resistance in the December 17 and 21 high levels.
On the other hand, if the supporting trend line fails to keep the rate up, the pair could reach for the December 17 low level near 102.90.
Hourly Chart
On the daily candle chart, the rate pierced the November low level of 103.20. Due to that reason new low levels could be reached.
However, in the aftermath of reaching a new low level, the pair has been consolidating by retracing back up. A retracement back up could reach for the 55-day simple moving average, which was located near the 104.50 mark.
Daily chart
Since Tuesday, on the Swiss Foreign Exchange 72% of volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 49% to sell and 51% to buy the pair.