The USD/JPY managed to pass the 110.00 level and surged on Tuesday. During the surge, the rate passed the resistance of the 110.25 level and the weekly R1 simple pivot point. On Wednesday morning, the surge had touched the 110.45 level before the rate retraced back down.
Economic Calendar
On Friday, the rate could move due to the publication of the US Producers Price Index at 12:30 GMT.
USD/JPY short-term review
If the decline of the pair continues, the rate could look for support in the 110.00 level. The 110.00 level was strengthened by the 55-hour simple moving average. In addition, the 100 and 200-hour simple moving averages were located at 109.97. Moreover, the weekly simple pivot point provides support at 109.92.However, a surge of the rate would face resistance at 110.20/110.30 and 110.40/110.45. Above these levels, the weekly R2 simple pivot point at 110.75 could serve as resistance.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has once again broken out of the squeeze between the 55 and 100-day simple moving averages. The rate had been trading between the two technical levels since August 19. However, there were two break outs form the range on August 24 and September 1.Daily chart
Since Friday, traders on the Swiss Foreign Exchange were 67% short on USD/JPY.
On Wednesday, the situation changed, as 64% of volume was in short positions.
Meanwhile, traders have set up sell orders. Namely, on Tuesday, trader set up pending orders in the 100-pip range around the rate were 65% to sell.
On Wednesday, 60% of orders in that range were to sell.