On Thursday, the USD/JPY was testing the upper trend line of a previously pierced ascending channel pattern.
In general, the rate was expected to reach the 110.50 level, which it did faster than forecast.
Namely, by the time this combined daily publication was done, the short term morning technical analysis was obsolete.
During Monday's trading session, the Japanese Yen appreciated 54 pips or 0.50% against the US Dollar. Note, that the US Dollar also depreciated significantly against gold.
The reason for the advance was the announcement from the Chinese government that it would impose tariffs on $60B of the US goods from June 1.
Most likely, the demand for the Japanese Yen and for gold has increased as for the safe-haven assets.
US FOMC in focus for USD/JPY
Late on Wednesday, the top event of the month will occur. The US FOMC Meeting Minutes will be released at 18:00 GMT. On the EUR/USD it has caused moves from 10.2 to 29.1 pips since October 2018.
The week will end with the US Durable Goods Orders and Core Durable Goods Orders on Friday at 12:30 GMT. This event has been rather non-eventful in the past half a year, as it has caused moves of only five to 18 pips.
USD/JPY short-term daily review
The hourly candle chart at Tuesday's noon of London session revealed that the rate had surged in the aftermath of its third reach above the 110.20 level.By the middle of the day, the rate had reached above the resistance of the weekly R1 at 110.51. If the surge continues, it would reach the combined resistance of a monthly pivot point and a 61.80% Fibonacci retracement level near 110.70.
On the other hand, the rate could consolidate its recent gains by trading sideways until the hourly simple moving averages catch up.
Hourly Chart
Previously it was constantly repeated that the rate is oversold, as the daily candle chart's simple moving averages were located far above the currency exchange rate.On Tuesday, the rate had reached and pierced one of the daily simple moving averages. Namely, the 100-day SMA was passed at the 110.47 level.
The rate no longer can be considered oversold on the daily chart. However, the 100-day SMA was set to provide technical support to the currency exchange rate.
Daily chart
Since the middle of last week the Swiss Foreign Exchange sentiment was mostly bullish. As more than 60% of all open position volume was in long positions.
On Tuesday, 61% of open position volume was in long positions.
It indicates that most traders profited from the recent surge.
Meanwhile, trader set up pending orders were mostly bullish, as 59% of pending commands in the 100-pip range were set to buy.