At mid-day on Wednesday, the USD/JPY currency exchange rate passed the resistance of the 55 and 200-hour simple moving averages at 109.10.
Previously, the rate's decline found support in the 108.85 level, which kept the rate from declining throughout most of Tuesday.
Economic Calendar
The rate could move due to the FOMC Meeting Minutes on Wednesday at 18:00 GMT. The pair has moved from 3.8 to 7.9 pips on the release.
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 near term future, the rate was expected to test the resistance of the weekly simple pivot point at 109.17 and the 100-hour simple moving average near 109.25. If the pair manages to pass these resistance levels, the USD/JPY could reach for the May high level zone at 109.70/109.80.On the other hand, in a bearish scenario the pair would once again look for support in the 108.85 level. If this level fails to keep the rate up, a decline to the weekly S1 simple pivot point at 108.56 could occur.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has returned to the support of the 55-day simple moving average. If the rate acts as it did before, the SMA will be pierced for a couple of days and afterwards the surge should resume.In addition, note the Fibonacci retracement levels. Namely, the 50.00% Fibonacci retracement at 108.57 and the 61.80% Fibo at 110.05.
Daily chart
On Wednesday, traders on the Swiss Foreign Exchange were 64% short on USD/JPY.
On Tuesday, the sentiment was 63% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 57% to buy the pair.