Afterwards, the markets were looking forward to the follow up press conference of the Chairman of the Federal Reserve Jerome Powell. In general, the head of the central bank stated that there are no expectations of Fed Funds Rate cut. The only way the policymakers would ease the rate would, if something breaks. Namely, unemployment bounces above 4.0% or the banking sector crashes. These comments caused a surge of the US Dollar that beat down the stock market.
The USD/JPY reacted to the news by testing the resistance of the 147.50 level and the 50-hour simple moving averages. Afterwards, the rate declined to the 146.50 level and started to trade in the 146.50/147.00 range. After the US markets opened on Thursday, the USD/JPY declined and shortly traded below 146.00.
Economic Calendar
On Friday, at 13:30 GMT, the US Employment data sets will be released and they are set to impact the market. The release consists of Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings month on month difference.
USD/JPY hourly chart analysis
An extension of the decline could look for support in the weekly S2 simple pivot point at 145.78. Further below, note the 145.50 and 145.00 levels that are highly likely going to impact the rate.On the other hand, a resumption of the previous USD surge against the Yen is set to face the 146.50 and 147.00 levels and the weekly S1 simple pivot point at 146.97 and the descending 50-hour simple moving average. Higher above, take into account the 100 and 200-hour simple moving averages near the 147.50 level.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the USD/JPY has declined below the 100-day simple moving average. The pair appears to be finding support in the 144.60/146.00 range and the 50 and 200-day simple moving averages in it.A passing below the support range could result in a decline to the 142.00 level that has acted as support during late 2023.
Daily chart
Read More: Technical Analysis
Traders are long
On Thursday, trader open position volume showed that Dukascopy traders were 72% long.
Meanwhile, pending orders in the 100-point range around the rate were 64% to sell the USD/JPY.
Before the Fed events, trader positons were 73% long and orders were 52% to buy.