The USD/JPY kept finding support in the 112.73/112.78 zone for the 24-hour period from 08:00 GMT on Tuesday to Wednesday.
On Wednesday, the rate started a surge, which one by one passed the resistance of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point. During the day's US trading hours, the pair had reached the 114.00 mark. Namely, the exchange rate surged 124 base points or 1.10%.
Economic Calendar
Data releases for this pair, during this week, are over. Next week's events are scheduled to be analysed on Friday.
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
If the pair passes the resistance of the 114.00 mark, it could find resistance first in the weekly R1 simple pivot point at 114.15. Above the pivot point, the early November high level zone at 114.20/114.28 might act as resistance.However, a decline might look for support in the weekly PP at 113.72 and the 200-hour simple moving average 113.66. Further below, take into account the 100-hour SMA at 113.34 and the 50-hour SMA at 113.08.
Hourly Chart
USD/JPY daily chart's review
The rate has passed the 113.50 level, which provided support since October 20.The 114.40/114.75 zone is the resistance zone of the late 2017 and 2018 high levels.
Meanwhile, note the support zone below the 112.50 level. The zone consists of the 2019 and 2020 high levels.
Daily chart
On Tuesday, on the Swiss Foreign Exchange, traders were short, as 73% of open position volume was in short positions.
On Wednesday, sentiment was 71% short.
Meanwhile, on Wednesday, trader set up pending orders in the 100-pip range around the rate were 76% to sell.
On Tuesday, the orders were balanced, as 50% were to buy and 50% to sell.