On June 16, the US Federal Reserve published the Federal Open Market Committee's Statement, Economic Projections and Federal Funds Rate. The main news that the markets reacted to was the revelation in the Economic Projections that the central bank could hike interest rates in 2023, as it expects an end to the coronavirus and growth of inflation.
The surge caused by the central bank reached the 110.80 level. The 110.80 caused a consolidation, as the rate began to trade sideways between the 110.80 and 110.60 levels.
Economic Calendar
On Thursday, the US Unemployment Claims could cause a move from 7.4 to 21.7 pips.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
In the near term future, if the rate surges, it could find resistance in the 111.00 mark. The rate bounced off the 111.00 level during its early April surge.On the other hand, if the rate declines, it would look for support in the cluster of levels near 110.20. Namely, the weekly R2 simple pivot point at 110.23, the 55-hour simple moving average and the 110.20 mark could provide support.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the recent jump was consistent with the channel up pattern, which has guided the rate since the middle of April.In the case of the channel holding and the rate surging in its borders, a potential target would be the 2020 high zone near the 112.00 level.
Daily chart
On Thursday, traders on the Swiss Foreign Exchange were 63% short on USD/JPY, as 63% of open position volume was in short positions.
The sentiment has been gradually declining from being 70% short on Monday.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 53% to buy.