On the USD/JPY charts it resulted in a dip below the 154.70/154.80 range down to the support of the 100-hour simple moving average. These levels pushed the rate up. On Wednesday, the rate was finding support in the 154.70/154.80 range and the 50-hour simple moving average. In general, the markets see the weakness of the Yen as larger issue than potential slowdown in the US.
Economic Calendar
On Thursday, watch the publication of the US Advance quarterly GDP publication at 12:30 GMT. Note that the United States GDP data is published over the span of a quarter by giving updated data each month. First release has the most impact and is called the Preliminary. It is followed by the Advance GDP release, which is expected on Thursday. Afterwards, the GDP publications end with the Final GDP, and the cycle starts again with a new quarter.
Also on Thursday, watch the US Pending Home Sales data publication at 14:00 GMT. In the recent months, this previously ignored data set has started to impact the US Dollar.
On Friday, one of the top US data releases will occur. The Core Personal Consumption Expenditure will reveal more detailed impact of inflation on the US consumer. US monetary policy makers have been observing this index instead of the Consumer Price Index to decide upon their policy.
However, before the US inflation, the Bank of Japan is set to have its say, as the Bank of Japan Policy Rate will be released in the morning. Note that the BoJ does not set a certain time for their publications and Press Conference to avoid market volatility increases.
USD/JPY hourly chart analysis
In the near term future, the pair is set to face the resistance of the 155.00 mark. If this level fails, the USD/JPY will encounter resistance in the weekly R1 at 155.24 level, before reaching the 156.00 level and the weekly R2 at 155.92.Meanwhile, note that a decline would have to pass below the 154.70/154.80 range and the 50 and 100-hour simple moving averages. Further below, the 154.50 level and the 200-hour SMA are set to act as support. If all of these levels fail, look for the weekly simple pivot point at 154.10, the 154.00 mark and the 153.85/153.95 zone.
Hourly Chart
USD/JPY daily chart's review
The daily candle chart of USD /JPY shows the prior high levels that could all turn into support in the case of a decline. Meanwhile, note the ascending 50-day simple moving average that has passed above 150.00.Daily chart
During Tuesdays trading, trader open position volume showed that Dukascopy traders were 69% long.
Meanwhile, pending orders in the 100-point range around the rate were 51% to sell the USD/JPY.
On Wednesday, positons were 67% long and orders were 65% to sell.