Prior to the event, the USD/JPY declined below the 141.00 and 140.50 levels. It appeared that it was heading to the combined technical support of the 200-hour simple moving average and the 140.00 level.
Economic Calendar
This week, all attention will be on the expected US Federal Reserve Rate hike at 18:00 GMT on Wednesday. The Federal Reserve is expected to increase base interest rate by 0.25%.
On Thursday, the European Central Bank is set to increase its Main Refinancing Rate from 4.00% up to 4.25% at 12:15 GMT.
After the European hike, at 12:30 GMT the US Advance GDP, Unemployment Claims and the Durable Goods Orders are highly likely set to impact the financial markets via an adjustment of US Dollar's value.
On Friday, at 12:30 GMT, the US Core PCE Price Index data is set to impact the US Dollar.
Hourly Chart
A move below 140.00 could be slowed down by the 139.50 level and the combined support of the weekly S1 simple pivot point at 138.96 and the 139.00 mark.
In the case of a recovery of the US Dollar, resistance might be encountered in the 141.00 mark and the 50 and 100-hour simple moving averages. Higher above, note the 141.50 and 142.00 levels.
However, fundamentals and, especially, Fed rate hike are above all technicals.
USD/JPY daily chart's review
On the daily candle chart, the pair found support in the 100-day simple moving average. The technical indicator acted as support two times and appears to have caused the recent recovery of the US Dollar against the Yen.More recently, the rate ignored the resistance and support of the 50-day simple moving average. It appears it is incapable of impact the USD/JPY.
Daily chart
Before the Fed rate announcement, traders were bullish on USD/JPY, as 75% of open positions on the Swiss Foreign Exchange were long.
In the meantime, trader pending orders in the 100-point range around the current exchange rate are 63% to buy.