Since September 23, the USD/JPY was sharply surging in a channel up pattern. On Wednesday morning, the rate booked a new high level, as it touched the 111.68 level.
However, the booking of the new high level was followed by a decline. The decline passed below the lower trend line of the narrow channel up pattern, which captured the rate's surge.
Economic Calendar
On Thursday, at the same time as the US GDP, the US weekly Unemployment Claims could also impact the USD. The GDP has moved the USD/JPY from 4.5 to 8.5 pips and the Unemployment Claims caused moves from 3.7 to 24.7 pips.
On Friday, at 14:00 GMT a notable move could be created by the US ISM Manufacturing PMI results. The event has caused 9.3 to 19.4 pip moves.
USD/JPY short-term review
The decline of the pair could find support in the 55-hour simple moving average near the 111.20 level. Below the 55-hour SMA, the 100-hour simple moving average near 110.80 could provide support. Meanwhile, note that the simple R1 simple pivot point at 111.34 managed to provide support for a couple of hours during Wednesday's morning hours.In the case of the USD/JPY recovering, the pair might find resistance, first in the weekly R1 simple pivot point at 111.34. Afterwards, the weekly R2 simple pivot point at 111.91 could act as resistance. Above the pivot points, the 112.00 level could hold the pair down.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the USD/JPY appears to have found resistance in the June high level, which reversed the rates two month surge at the end of June.Daily chart
On Wednesday, on the Swiss Foreign Exchange, traders were short, as 74% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 52% to buy.