USD/JPY respects round levels

Source: Dukascopy Bank SA
The decline of the USD/JPY passed one technical support level after another until it reached the 129.00 mark on Thursday morning. The round level acted as support and caused a surge up to the 130.00 level. It was observed that the 130.00 mark was acting as resistance.

Namely, the main conclusion was that the round exchange rate levels are set to continue to act as support and resistance.

Economic Calendar



On Thursday, the US Advance GDP data is set to reveal whether the United States are or are not experiencing a decline in the Gross Domestic Product at 13:30 GMT. The Advance GDP is the first data set that reveals how the economy has done in the last quarter.

The week will end with the publication of the US Core PCE Price Index. This index is the one being used by the US Federal Reserve to measure the impact of inflation on the consumers. It is seen by some as more important than the CPI. The release is scheduled for 13:30 GMT.

Hourly Chart
A move above 130.00 could face resistance in the 130.50 and 131.00 levels. Both of these levels have recently acted as resistance. Higher above, note the weekly R1 simple pivot point at 131.62.

Meanwhile, a decline of the currency pair could look for support in 129.00, 128.50 and 128.00, before the support zone near 127.25/127.50 would be reached.

USD/JPY daily chart's review

On the daily candle chart, the pair finds resistance not only in the 130.00 mark, but also the support and resistance zone at 130.50/131.40.
Daily chart



Traders become neutral

On Wednesday, on the Swiss Foreign Exchange, traders were 55% short, as that amount of open position volume was in short positions.

Meanwhile, trader set up pending orders in the 100-pip range around the rate were 53% to sell the USD against the JPY.

On Thursday, the positions were 51% short and orders were 57% to sell.

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