At mid-day on Wednesday, the USD/JPY currency exchange rate dropped sharply due to the release of the US Producer Price Index data. During its decline, the rate plummeted below all close by technical support levels.
Economic Calendar
On Thursday, the weekly US Unemployment Claims could cause minor USD moves.
The week will end with the US Retail Sales data at 12:30 GMT.
In addition, note that the Bank of Japan is set to make a Policy Statement on Friday. However, the bank does not set a time for the event.
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 theory, the rate could decline as low as the previous July low level near 109.55. However, on its way down the pair is most likely going to encounter some support in the 110.00 exchange rate level.On the other hand, a potential recovery would find resistance in the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point in the 110.20/110.50 range.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has broken the channel up pattern, which guided it since April. Moreover, the pair passed the support of a 61.80% Fibonacci retracement level at 110.05.In the meantime, note that the 55 and 100-day simple moving averages could provide the rate with support at 109.73 and 109.23.
Daily chart
On Wednesday, traders on the Swiss Foreign Exchange were 70% short on the USD/JPY currency pair.
On Tuesday, the open position volume was 72% short.
Meanwhile, on Wednesday, SWFX traders set up pending orders in the 100-pip range around the rate were 61% to buy.