The rate broke out of the recent squeeze to the upside. By the middle of Wednesday's GMT trading hours, the pair had reached and tested the resistance of the 200-hour simple moving average at 105.20 level.
Future forecasts were based upon whether the 200-hour SMA manages to keep the USD/JPY rate down.
Economic Calendar
Throughout the whole day the Markit institute is set to publish Manufacturing and Services Purchasing Managers Indices. The indices are the result of a major survey of firm representatives.
At 13:45 the US PMIs will be released. These PMIs could impact the USD/JPY through the strength of the USD.
On Thursday, as accustomed, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
The week will end with a possible minor move from the US Durable Goods Orders at 12:30 GMT.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
On Tuesday, the USD/JPY currency pair raised to the 200-hour SMA near 105.15.If the predetermined moving average holds, it is likely that a reversal south could occur. In this case the exchange rate could gain support from the 55– and 100-hour SMAs in the 104.70 area.
Otherwise, it is likely that some upside potential could prevail in the market in the short run, and the currency pair could target the weekly R1 located at the 105.76 mark.
Hourly Chart
On the daily candle chart, the pair has passed the July low level of 104.20. There are no longer historical low levels nearby, which could stop the rate's drop. The Yen continues to strengthen against the USD.
In the meantime, the daily simple moving averages have remained far above the rate. It indicates that the rate is oversold on the daily candle chart.
Daily chart
Since Monday, traders of the Swiss Foreign Exchange were long, as 57% of all open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were 65% to sell.
The orders were 52% to buy on Tuesday.