Prior to analysing the technical chart, note that the Federal Reserve rate hike is incoming at 18:00 GMT. Afterwards, a press conference will be held by the Chairman of the Federal Reserve Jerome Powell.
Economic Calendar
The top event of the month is scheduled for Wednesday's 18:00 GMT. The US Federal Reserve will publish its Economic Projections and Statement. The central bank is expected to hike interest rates. The question remains among market participants whether a 0.50% or 0.75% hike occurs.
Note that after the official announcement a press conference is scheduled for 18:30 GMT.
Hourly Chart
If the pair declines below the 100-hour SMA at 134.40 and the 134.50 level, note that previously support was found in 134.40 and 133.50. In addition, the 200-hour simple moving average is approaching the pair from below.
On the other hand, a resumption of the USD surge is set to test the 135.00 and 135.50 levels, before reaching the weekly R1 simple pivot point at 135.82 and the 136.00 mark.
USD/JPY daily chart's review
On the daily candle chart, the rate has shortly reached above the 2002 level at 135.00. However, it appears that a zone around this level is acting as resistance to the surge.Daily chart
On Wednesday, on the Swiss Foreign Exchange, traders were 74% short as that amount of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 64% to sell the USD against the JPY.
On Tuesday, the open positions were 73% short and pending orders were 53% to sell.