Instead of reaching the weekly S1 at 111.18 the rate retraced up to the resistance of the 55 and 100-hour simple moving averages together with a new monthly PP at 111.56.
Meanwhile, take into account that on the hourly candle chart a new channel down pattern has been added.
Census Bureau released the US Core Durable Goods Orders data that came out better-than-expected of 0.4% compared with forecast 0.2%.
The US Durable Goods Orders reached 2.7% in March. This is the strongest growth since July. According to analysts, the rise was driven by the growing demand for commercial aircraft. Economists are expecting that the US manufacturing, weakened by slower global economic growth and trade wars, will begin to recover in following months to support the economy.
Federal Open Markets Committee will impact USD/JPY
During this week there are various macroeconomic data releases that will impact currency exchange rates. Moreover, there will be a Federal Funds Rate announcement.During Wednesday's trading session there will be two events to watch.
First will be the ISM Manufacturing PMI, which will be covered this week for one reason. To check whether this data release is significant enough to be on the economic calendars.
On the same day note that the most important event of the month will take place. At 18:00 GMT the US Federal Funds Rate and FOMC Statement will be published. The US Federal Reserve will reveal the future of the US Dollar.
On Thursday, the Bank of England announced their monetary policy data and information at 11:00 GMT. Moreover, the Governor of the bank will speak at 11:30 at a press conference.
On Friday, the US Employment data sets will be published at 12:30 GMT. This event is considered the second most important release for the USD. However, due to three data sets having individual impact on the USD the range of the volatility increase is wide during the data release.
Meanwhile, check out the previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
USD/JPY short-term daily review
During the previous trading session, the USD/JPY currency pair reversed north from the 111.30 level. During today's morning, the pair was trading near the upper boundary of the short-term descending channel at 111.60.It is unlikely, that a breakout north from the channel could occur in the nearest future due to the resistance level formed by a combination of the 55– and 100-hour SMAs, as well the monthly PP at 111.55.
It is expected, that the exchange rate reverses south from the given channel line and targets the weekly S1 at 111.18.
However, if the given resistance does not hold, the rate could jump to the weekly PP and the 200-hour SMA at 111.79.
Hourly Chart
On the daily candle chart, the USD/JPY is being supported by the 200-day SMA at 111.47. In addition, the 55-day simple moving average was approaching the rate at 111.20 and was about to push the pair higher.Meanwhile, the rate has moved below the lower trend line of a dominant ascending channel pattern.
Due to the fact that the SMAs are still holding, sideways trading is expected.
Daily chart
On the Swiss Foreign Exchange, 57% of the total open position volume was in short positions.
Meanwhile, trader set up pending orders were bearish, as 66% of pending commands in the 100-pip range were set to sell.