Since mid-day on Tuesday, the USD/JPY traded sideways between the support of the 109.60/109.67 zone and the resistance of the 109.91/109.94 zone.
Between these two zones, the rate ignored the 61.80% Fibonacci retracement level and the weekly S1 simple pivot point.
Economic Calendar
On Wednesday, at 19:00 GMT, the US Federal Open Markets Committee is set to publish its Meeting Minutes. The rate had the initial reaction of 3.8 to 10.5 base points.
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 case of the rate passing the resistance of the 109.91/109.94 zone, the pair could reach for the 55-hour simple moving average at 110.13, the 200-hour SMA at 110.23 and afterwards the weekly simple pivot point and the 100-hour SMA at 110.37.On the other hand, the rate could end the sideways trading by passing the support of the 109.60 level. In this scenario, the pair would look for support in the mid-March high level zone at 109.38/109.23.
Hourly Chart
On the daily candle chart, next notable resistance cluster on the daily candle chart is the zone that surrounds the 112.00 mark. The zone consists of the 2019 and 2020 high levels. Zoom out to see how the rate acted near this level during both of those years.
Daily chart
On Tuesday, traders were 71% short on USD/JPY. On Wednesday, 74% of volume was short.
The Swiss Foreign Exchange open positions have been mostly short for a month. It appears that traders expect a larger retracement back down, despite the rate gaining new heights.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 60% to buy. The orders had not changed since Tuesday.