The support of the 50.00% Fibonacci retracement level at 108.35 held and caused another surge to the technical levels near 109.00.
During the early hours of Wednesday's trading, the pair had reached the resistance of the weekly simple pivot and the 100-hour simple moving average at 108.90.
Economic Calendar
The rate could move due to the US CPI on Wednesday at 12:30 GMT. The pair has moved from 8.1 to 27.1 pips on the release.
On Friday, the US Retail Sales and Core Retail Sales at 12:30 GMT are bound to move the pair, as the release had moved the pair from 9.3 to 16.7 since December.
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USD/JPY short-term review
If the rate manages to pass the weekly simple pivot point's and 100-hour SMA's resistance at 108.90, the rate would most likely find resistance in the 109.00 level and the 200-hour simple moving average.On the other hand, a possible decline could look for support in the 55-hour SMA before dropping to the 50.00% Fibonacci retracement level at 108.35.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate appears to have been piercing the support of the 55-day simple moving average since Friday. Previously, despite being pierced, the SMA managed to cause a surge of the rate.Daily chart
On Tuesday, traders on the Swiss Foreign Exchange were 60% short on USD/JPY. During early Wednesday trading, 62% of volume was short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 55% to sell the pair.