During Friday's morning, the USD/JPY was testing the support level formed by the 55- and 200-hour SMAs, as well the weekly PP at 107.70.
If the given support level holds, it is expected, that a reversal north could occur.
Bureau of Economic Analysis released the US Final GDP data, which came out in line with expectations of 3.1%.
According to the official release: "The first-quarter percent change in real GDP was the same as previously estimated, reflecting upward revisions to nonresidential fixed investment, exports, state and local government spending, and residential fixed investment that were offset by downward revisions to PCE and inventory investment, and an upward revision to imports."
G20 summit is on focus
On Friday, G20 summit might cause some volatility in the market.
The full review of all of the notable events is available in video on the Dukascopy Webinars YouTube channel.
USD/JPY short-term daily review
On Thursday, the USD/JPY currency pair declined to the support level formed by the 55– and 200-hour SMAs, as well the weekly PP at 107.70. During today's morning, the pair was testing the given support.If the given support level holds, it is expected, that a reversal north could occur within the following trading hours. In this case, the exchange rate could try to surpass the psychological level at the 108.00 mark.
Otherwise, it is likely, that the Japanese Yen could continue to appreciate against the US Dollar. Note, that the rate could be supported by the 100-hour moving average and the monthly S1, located at 107.50 and 107.39 respectively.
Hourly Chart
On the daily candle chart, the rate is making movements in the borders of a large descending channel pattern.
On Friday, it could be observed, that the currency pair is supported by the weekly PP at 107.70.
Daily chart
By the middle of Wednesday, 71% of open USD/JPY position volume was in long positions. Traders, who had stuck to their long positions throughout the drop were recovering their losses.
On Thursday, the sentiment was 73% long. It indicates that some traders had opened additional long positions or closed short positions.
On Friday, 74% of all open positions were long.
Meanwhile, trader set up pending orders were bullish on Friday, as 59% of pending commands in the 100-pip range were set to buy.