On Tuesday, the pair bounced off the resistance zone and declined to find support in the combination of the 145.50 level and the weekly simple pivot point.
Economic Calendar
On Wednesday, at 13:45 GMT, the US PMIs are scheduled to be released and could impact all of financial markets.
On Friday, the top event of the week is set to take place, as the head of the Federal Reserve, Chairman Powell, is set to give a speech on monetary policy at the Jackson Hole Symposium. Last year's speech was the catalyst for the September drop of the financial markets, as the USD gained value.
Hourly Chart
A recovery of the rate could result in another test of the 146.30/146.55 range and the weekly R1 simple pivot point at 146.38. If these levels are broken, the 147.00 mark might act as resistance.
In the case of the pair passing below 145.50, note that the 200-hour simple moving average might act as support near 145.40. Below these levels, the 144.90/145.15 level is highly likely going to provide support. Below the support range take into account the combination of the weekly S1 simple pivot point at 144.47 and the 144.50 level.
USD/JPY daily chart's review
On the daily candle chart, on August 10, the rate reached the 145.00/146.00 range, which marks a zone that acted as resistance and support in the second part of 2022. At the end of June and early July of 2023 this range caused the July decline.Recently, the resistance zone was broken, and for almost a week now it has acted as support.
Daily chart
On Tuesday, traders were bearish on USD/JPY, as 61% of open positions on the Swiss Foreign Exchange were short.
In the meantime, trader pending orders in the 100-point range around the current exchange rate are 56% to sell.