The weakness of the US Dollar resulted in the USD/JPY currency exchange rate reaching the 139.50 level during the early hours of Asian trading session. Meanwhile, the rate had left above it most of the hourly simple moving averages.
Economic Calendar
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
An extension of the ongoing decline would have to pass the 139.50 level's support, before reaching the combination of the weekly S1 simple pivot point at 138.96 and the 139.00 mark. Further below, note the 138.50 level and the support zone at 137.25/138.00.
However, a recovery of the US Dollar against the Japanese Yen could encounter resistance in the 140.00 mark and the 200-hour simple moving average. Above these levels, the weekly simple pivot point might act as resistance together with the 50-hour SMA near 140.50. Higher above, note the 141.00 level and the 100-hour SMA.
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.
On Thursday, open positions were 73% long and orders were 52% to sell.