The USD/JPY has skyrocketed. The pair has reached the 112:00 level by the middle of the day's trading session.
The move was caused by the fundamental events globally that have caused a larger than expected surge of the USD and a decline of the JPY.
The Federal Reserve released the US FOMC Meeting Minutes last Wednesday. The Fed officials provided in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
"Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve's asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserve's balance sheet," the document said.
Only one US data release
On Friday, the Canadian GDP data will be out at 13:30 GMT. It is most likely set to be the event which will cause the biggest move during this week.
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USD/JPY short term daily review
The USD/JPY has made another large fundamental move. The rate has suddenly surged, breaking all the previously used pattern trend lines.Although, our forecast had described a surge that would occur from the 110.80 level. If one would have used properly trailing stop losses, he should still be in a profitable position that caught the whole move.
In regards to the near term future, the pair is expected to reach for the 112.00 level, where it would test the psychological resistance of this round level.
Hourly Chart
On the daily chart the pair has broken the daily simple moving averages and the last weekly resistance level.Moreover, the upper trend line of the ascending channel pattern has been pierced during the Friday's session.
A review of the larger scale patterns will be conducted as soon as new reference points are available.
Daily chart
Trader open position volume on the Swiss Foreign Exchange remains short. 61% of open volume was short since Thursday.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were no longer neutral.
On Friday, 60% of pending orders in that range were set to sell the pair.