First of all, the surge of the USD/JPY has reached above the 110.00 level. Second, the rate reached the September 13 and 14 high level at 110.15 at the start of Thursday's US trading. The near term future was dependent on what would happen at the high level.
Economic Calendar
On September 22, the Bank of Japan published its Monetary Policy Statement. The four page statement essentially revealed that the future is highly unclear during Covid 19, asset purchases would remain unchanged, economic recovery would occur at a slower pace.
USD/JPY short-term review
If the pair passes the resistance of the 110.15 level, it would face no notable resistance as high as the September high levels near 110.40 and the weekly R1 simple pivot point at 110.42.However, a decline of the currency exchange rate from the 110.15 level could look for support first in the 110.00 level before reaching for the weekly simple pivot point at 109.77. Below these levels, the 55, 100 and 200-hour simple moving averages were located in the 109.60/109.70 range.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate encountered the combined resistance of the 55 and 100-day simple moving averages at 109.90. The resistance held throughout Wednesday. On Thursday, it was passed.On the chart, the rate has the resistance of the July and August high levels in the zone above the 110.60 level.
Daily chart
Since Tuesday, on the Swiss Foreign Exchange, traders were short, as 64% of open position volume was in short positions.
On Thursday, the sentiment was 69% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 63% to buy on Wednesday. On Thursday, the orders were 62% to sell.