On Tuesday, the rate was trading sideways around the 108.20 level.
Economic Calendar
On Wednesday, September 18, the FOMC Statement and Economic Projections releases are expected at 18:00 GMT. Note that the Federal Funds Rate data will be published at the same time. Since December, these releases have moved the pair from 25.8 to 52.1 pips.
On Thursday, September 19, the Bank of Japan is expected to release the Monetary Policy Statement.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair surged to the 108.20 level. During Tuesday morning, the pair was trading at the given level.Given that the exchange rate is supported by the 55– and 100-hour SMAs, currently located circa 108.00, it is likely that bulls could prevail in the market in the short term. Important level to look out for is the Fibonacci 38.20% retracement at 108.44.
On the other hand, the Greenback could consolidate against the Japanese Yen at the given psychological level within the following trading session. It is unlikely that bears could prevail, and the pair could drop lower than the weekly PP at 107.73.
Hourly Chart
On the daily candle chart, the pair has broken the resistance of the 100-day simple moving average. After the technical level was passed, it began to provide support at 108.00.
Daily chart
Read More: Technical Analysis
Traders continue to be long
On Tuesday, 58% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were bearish. Namely, in the 100-pip range 69% of pending orders were set to sell and 31% were to buy.
Previously, the orders were 56% to sell since Friday.