On Thursday, the USD/JPY was declining to the support of an ascending channel pattern.
Meanwhile, on a larger scale the currency exchange rate has traded sideways.US Advance GDP data release on focus
On Thursday, the US Core Durable Goods Orders will be published at 12:30 GMT. Previously, the given release caused only a four-pip move.
The week will end with the US Advance GDP data release on Friday at 12:30 GMT. Last data release caused a 23-pip move in the USD/JPY exchange rate.
Click Here: Economic Calendar Overview 19/07
USD/JPY short-term daily review
On Wednesday, the USD/JPY currency pair traded sideways, trying to breach the support cluster formed by the 55-, 100– and 200-hour SMAs in the 107.96/108.14 range.During Thursday's morning, the exchange rate still was testing the given support. If it holds, it is expected, that a reversal north could occur within the following trading hours, and the rate could reach the weekly R1 at 108.35.
Otherwise, it is likely, that the pair could go downwards. Note, that the pair could the support from the weekly and monthly PPs, located circa 107.80. If the given support does not, the rate could target the 107.60 level.
Hourly Chart
On the daily candle chart, the rate is in a large scale descending channel that has guided the pair since late February.
Meanwhile the rate is surging in a smaller scale ascending channel pattern.
Note, that the rate is pressured by the 55-day SMA, currently located at 108.55. Also, the rate might reverse south from the Fibonacci 38.20% retracement at 108.43.
Daily chart
Read More: Technical Analysis
Long sentiment decreases
Since Tuesday, 74% of open USD/JPY position volume on the Swiss Foreign Exchange was located in long positions.
The sentiment decreased on Thursday, as 70% of volume was in long positions.
Meanwhile, trader set up pending orders were neutral, as in the 100-pip range 52% of pending orders were set to buy and 48% were to sell.