The support of the 55-hour SMA, which pushed the rate up since February 24 has failed at continuing the surge of the USD/JPY. Since late Tuesday's European trading hours, the rate has been trading around the simple moving average.
In the meantime, the currency exchange rate was being approached by the support of the 100-hour simple moving average.
Economic Calendar
On Wednesday, the US Consumer Price Index data could cause a minor move on USD assets at 13:30 GMT. The USD/JPY has moved from 4.7 to 21.5 pips on the announcement.
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
If the 100-hour SMA provides support, the rate could surge and make another attempt to pass the resistance of the weekly R1 simple pivot point at 109.23. If the pivot point does not hold, the rate might reach for the 109.50 mark.On the other hand, a failure of the simple moving average in pushing the rate up would most likely result in a decline to the 50.00% Fibonacci retracement level at the 108.35 level.
Hourly Chart
On the daily candle chart, the rate could eventually reach the 61.80% Fibonacci retracement level at the 109.83 level. This retracement level stopped the rate's early June's sharp recovery and forced the USD/JPY into continuing its large scale decline.
Daily chart
On Wednesday, traders were 71% short on USD/JPY. The Swiss Foreign Exchange open positions have been mostly short for almost two weeks.
On Tuesday, 74% were short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 54% to buy.