The 108.80 level did not manage to provide support to the USD/JPY currency exchange rate during Thursday's and Friday's trading hours. On Friday morning, the rate clearly passed below the 108.80 level, as the 108.70 mark was touched.
Economic Calendar
At 12:30 GMT on Thursday, the US Preliminary GDP is set to be published. This event has caused USD/JPY moves from 6.3 to 10.4 pips.
Also on Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. Our analysts have been ignoring this event since February, as it did not have an impact on the USD. This week, another check of the data was done.
The USD/JPY has moved from 5.9 to 21.7 pips since April 22 due to the Unemployment Claims.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
In the near term future, the decline of the rate could reach the 108.60 level, which reversed the highly volatile Wednesday's decline. If the 108.60 level gets passed, the weekly S1 simple pivot point at 108.56 would immediately provide support. A potential decline below these levels could reach the 50.00% Fibonacci retracement level at 108.35.On the other hand, a potential surge could find resistance in the 55, 100 and 200-hour simple moving averages in the 109.00/109.10 range and the 109.00 mark.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has clearly passed the support of the 55-day simple moving average. Moreover, the lower trend line of the channel up pattern has been passed.In addition, note the Fibonacci retracement levels. Namely, the 50.00% Fibonacci retracement at 108.57 and the 61.80% Fibo at 110.05. The 50.00% Fibonacci retracement could soon provide support.
Daily chart
On Thursday, traders on the Swiss Foreign Exchange were 66% short on USD/JPY.
On Friday, the sentiment was 63% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 58% to buy the pair.