The USD/JPY currency pair bounced off the lower line of a descending channel pattern at 109.18 on Tuesday. As a result, the US Dollar surged by 50 pips or 0.46% against the Japanese Yen during yesterday's trading session.
Economic Calendar
On Wednesday, the top event of the week would occur. At 18:00 GMT, the US FOMC Meeting Minutes could cause a move from 10.8 to 54.3, as it had done since November 2020.
On Thursday, the US Unemployment Claims could cause a move from 5.9 to 28.8 pips.
USD/JPY short-term review
The exchange rate could continue to edge higher during the following trading session. The possible target for bullish traders will be near a resistance cluster at 110.05.However, the 100– hour simple moving average at 109.80 could provide resistance for the currency exchange rate in this session.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the currency exchange rate fails to break the resistance level near the upper line of a descending channel pattern at 110.50.In the case of the channel holding, the USD/JPY pair could continue to trend downward during the following trading sessions.
Daily chart
On Tuesday, traders on the Swiss Foreign Exchange were 55% short on USD/JPY.
On Wednesday, the sentiment was 61% short.
Meanwhile, traders set up pending orders in the 100-pip range around the rate was 56% to buy.