The USD/JPY managed to pass the support of the 107.80/108.00 zone. This resulted in a sharp drop to the 107.50 level.
However, the support of the 107.50 managed to hold and immediately cause a surge. The surge was much sharper than the drop and in less than two hours had almost reached the 108.20 level, ignoring all the levels that had any significance during the week.
Economic Calendar
Next week, on Wednesday, all of the markets will move due to the release of the US Federal Reserve Federal Funds Rate at 18:00 GMT. The USD/JPY has moved 7.8 to 34.5 pips on the announcement since September 16.
On Thursday, at 12:30 GMT, the US Advance GDP will be released. This event has caused USD/JPY move only from 6.0 to 21.1 pips.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
In the near term future, the USD/JPY was expected to encounter resistance in the 108.20 level, which provided the rate with resistance during the week.In the case of the rate passing the resistance of the 108.20 mark, the USD/JPY could test the upper trend line of the channel down pattern. On the other hand, a decline would be almost impossible to forecast, as it appears that the SMAs and the 107.80/108.00 zone are being ignored.
Hourly Chart
USD/JPY daily chart's review
The rate has reached the 55-hour simple moving average at the 107.80 mark on its daily candle chart on Wednesday and then pierced the SMA the next day. On Friday, the rate extended the range of the short term fluctuations below the SMA.Daily chart
On Thursday, traders on the Swiss Foreign Exchange were 58% short on USD/JPY. On Friday, 55% of volume was short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 73% to buy. The previous day, the orders were 61% to buy.