USD/JPY encounters resistance near 118.50

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The surge of the US Dollar against the Japanese Yen has encountered resistance near the 118.50 mark. Namely, a narrow zone below the round exchange rate level appears to have had enough profit taking and going short that the pair reversed its direction.

On Tuesday, the currency pair's decline found support in the 50-hour simple moving average near 117.80.

Economic Calendar



On Wednesday, at 12:30 GMT, the US Retail Sales and Core Retail Sales data might cause USD moves.

The top event of the quarter is scheduled for 18:00 GMT. At that time, the US Federal Reserve will releases its FOMC Statement and FOMC Economic Projections and the Federal Funds Rate.

Click on the link below to find out more about data releases of this and other currency exchange rates.

USD/JPY short-term review

If the pair resumes its decline, it would first have to pass the resistance of the weekly R1 simple pivot point at 118.20, before approaching the resistance zone near 118.50. Higher above, take into account the 119.00 mark and the weekly R2 simple pivot point at 119.04.

In the meantime, a potential decline below the 50-hour simple moving average might look for support in the 117.50 and 117.00 levels. In addition, note the 100-hour simple moving average at 117.00.

Hourly Chart

USD/JPY daily chart's review

On the daily candle chart, the rate has broken not only the 2022 high level zone, but also the channel up pattern, which guided the pair up since late 2021.

Note the zone at 118.50/118.70. This zone marks the pair's late 2016 and early 2017 high levels.

Daily chart




Traders are short on GBP/USD

On Monday, on the Swiss Foreign Exchange, traders were short, as 71% of open position volume was in short positions.

Meanwhile, trader set up pending orders in the 100-pip range around the rate were 54% to sell the USD against the JPY.

On Tuesday, 73% of open volume was short and pending orders were 51% to sell.

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