Yesterday, the USD/JPY currency pair jumped to the psychological level at 108.70.
During Friday's morning, the pair was trading at the given level. It is likely, that bulls could continue to prevail in market.US Advance GDP data release on focus
This 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
Yesterday, the USD/JPY currency pair jumped to the psychological level at 108.70. During Friday's morning, the rate was trading at the given level.From the one hand, the exchange rate could continue to extend gain in the nearest future. In this case, note, that the rate could test the resistance level formed by the weekly R2 and the monthly R1 located circa 108.90.
On the other hand, bears could prevail in the market in the short run, and the pair could reverse south. Note, that the rate could gain the support of the 55-, 100– and 200-hour SMAs, as well the Fibonacci 38.20% retracement and the weekly R1 in the 108.05/108.44 range.
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.
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.