On Wednesday morning, the USD/JPY currency pair bounced off the resistance of the 109.60 level. Previously, during night hours, the rate ended a decline by finding support in the September and August low level at 109.12.
In the near term future, the rate had two possible scenarios. The pair could either pass the resistance of the 109.60 zone or bounce off it.
Economic Calendar
On Wednesday, the top event of all macroeconomic events will occur. The US Federal Reserve Federal Open Market Committee is going to publish their Economic Projections, Statement and the Federal Funds Rate.
On Thursday, Markit Institute will publish their Purchasing Managers Indexes. The indexes are a result of survey of manufacturing and services sector managers about their outlook on their respective fields.
Also on Wednesday, at 12:30 GMT, the weekly US Unemployment Claims could cause minor increases of volatility. However, for example, the range for the EUR/USD moves during the release has been from 5.4 to 11.1 base points. On average, the EUR/USD moves less than 10 points on its own, during no event environment.
The week's notable events will end with the US Markit PMI release. Namely, the US Flash Manufacturing and Services PMIs at 13:45 GMT are highly likely to cause USD moves.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
In the case of a passing of the resistance zone, the pair would almost immediately encounter resistance, as the 200-hour simple moving average was located at 109.70 and the weekly simple pivot point was at 109.77.On the other hand, a decline might look for support in the 55-hour SMA at 109.46, the weekly S1 simple pivot point at 109.37 and afterwards the summer low level at 109.12.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has broken free from trading near the 55 and 100-day simple moving average. From a technical perspective, the rate was squeezed in between the SMAs and the US CPI release provided the needed push for it to break out.In regards to the future, if the pair continues to decline, it would look for support in the zone that surrounds the 109.00 mark.
Daily chart
Since Tuesday, on the Swiss Foreign Exchange, traders were short, as 64% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 63% to buy.