On Wednesday, the USD/JPY currency pair was testing the psychological level at 108.80.
Given that the pair is supported by the 55-hour moving average, it is likely that some upside potential could prevail in the market.
Economic CalendarToday, the US Federal Reserve Meeting Minutes are set to be published at 18:00 GMT. Since February the event has caused moves from 7.7 to 15.3 base points. This week, there will be one data release, which might impact the USD/JPY trough a value adjustment of the USD.
Today, at 12:30 GMT the US Retail Sales and US Core Retail Sales are scheduled to be released. Since May, the event had caused moves on the USD/JPY charts from 12.2 to 24.8 base points.
Meanwhile, take into account that next week there will be other events, which are expected to cause larger reactions on other currency exchange rates. Take a look at the published historical data tables by clicking on the link below.
Read More: 14.10-18.10 Event Historical Reactions
USD/JPY short-term daily review
On Tuesday, the USD/JPY currency pair reached the psychological level at 108.80. During today's morning, the pair was trading near the given level.Given that the exchange rate is supported by the 55– and 100-hour SMAs, currently located circa 108.40, it is likely that bulls could prevail in the market. A possible upside target is the resistance level formed by the weekly and monthly R1s at 109.14.
On the other hand, the currency pair could consolidate at the given psychological level within the following trading session. Also, it is unlikely that bears could prevail, and the pair could drop lower than the weekly PP at 107.91.
Hourly Chart
On the daily candle chart, the low level of October 3 has provided with a reference point for drawing simple trend patterns. Dukascopy Analytics added an ascending channel pattern. This pattern could guide the rate higher until the end of the year.
Meanwhile, by looking at the daily chart it can also be observed that above the 38.20% Fibonacci retracement level at 108.43 there are no technical resistance levels. Namely, the closest level was the 200-day simple moving average at the 109.05 level.
Daily chart
Read More: Technical Analysis
Swiss traders remain long
On Wednesday, 53% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were slightly bearish. Namely, in the 100-pip range 57% of pending orders were to sell and 43% were to buy.