On Friday, the decline was being slowed down by the support of a weekly pivot point, which next week will be moved, as the week will end. Due to that reason, most likely the monthly S2 at 106.54 will be targeted next. Latest Fundamental Event Report
The Federal Reserve released the Federal Funds Rate data, which came out in line with the expectations of 2.25%.
During the press conference the Fed Chairman Jerome Powell said a recent rate cut is not the start of a long series of rate cuts. He suggested that a global economic slowdown, the US trade tensions and a need to boost low inflation are the reasons why the US policymakers decided to lower the rate. Thus, the US Dollar appreciated against the Euro.
US Employment data
On Friday, the US employment data will be published. It will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the official Unemployment Rate. This release has caused moves from 13.4 to 38.9 base points.
USD/JPY short-term daily review
On Friday morning, the USD/JPY decline was stopped by a weekly pivot point at 106.85.If the pivot point gets passed, the weekly S2 at 106.54 would be targeted. On the other, hand the rate could get squeezed in between the pivot and a 23.60% Fibonacci retracement level at 107.02.
Meanwhile, take into account that next week the pivot points will be recalculated and moved to a different spot.
Hourly Chart
On the daily candle chart, the rate has bounced off in a sharp move off the upper trend lines of dominant patterns. The move was expected to occur a lot slower.
Moreover, note that the junior pattern's support was being tested. If it fails, the decline will continue.
Daily chart
On Wednesday, 69% of total open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
That number declined to 60% on Thursday. Dukascopy traders had taken profit from the surge.
On Friday, these traders had suffered losses. Meanwhile, by the middle of the day 74% of volume as in long positions. Traders expected to take advantage of a retracement back up after the sharp decline.
Meanwhile, trader set up pending orders were almost neutral, as in the 100-pip range 54% of pending orders were set to buy and 46% were to sell.