During today's morning, the USD/JPY currency pair was testing the support cluster formed by the 55– and 100-hour SMAs, as well the weekly and monthly PP in the 107.72/107.91 range.
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
During Friday, the USD/JPY currency pair surged to the upper boundary of the short-term descending channel located circa 108.07.During today's morning, the pair was testing the support cluster formed by the 55– and 100-hour SMAs, as well the weekly and monthly PP in the 107.72/107.91 range.
It is expected, that the exchange rate could surpass the given support and continue to decline, as it pressured by the 200-hour SMA, currently located at 108.07.
Otherwise, it is likely, that the rate could trade sideways between the given resistance and support in the short term.
Hourly Chart
The daily chart was updated at mid-day on Thursday. In general, 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 in accordance with these patterns the rate is expected to decline down to a support cluster at 107.00. At that level various pivot points, a 23.60% Fibonacci retracement level and the lower trend line of the smaller pattern are located at.
Daily chart
Read More: Technical Analysis
Traders are long on USD/JPY
On Monday, 72% 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 50% of pending orders were set to sell and 50% were to buy.