On Tuesday morning, the USD/JPY currency exchange rate plummeted, as the rate passed the support of the 109.00 level. Moreover, the pair broke the channel down pattern, which guided the pair down since May 13.
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.
USD/JPY short-term review
In regards to the future, the rate had no technical support. Namely, the USD/JPY could decline as low as the weekly S1 simple pivot point at 108.56 due to not having any close by technical support levels.
On the other hand, the pair could consolidate by trading sideways until the 55, 100 and 200-hour simple moving averages approach the rate from above and push it down.
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.