On Friday the USD/JPY reached the 111.00 level. The rate plummeted as soon as it reached below the support levels at 111.45.
In general, the future forecasts for the pair revolved around the support of the 111.00 level.
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.
US data on Friday might impact USD/JPY
On Friday, Canada and the US will publish their monthly employment data sets. It has five important data sets impacting the USD/CAD. It is the most complicated one to work with, as each data set impacts the rate differently.
For more information watch the weekly calendar analysis stream on our YouTube channel.
USD/JPY short term daily review
On Friday morning the USD/JPY dropped below the 200- hour SMA and a pivot point at 111.45. The event resulted in a sharp move down to the 111.00 level.The rate is expected to trade sideways or slightly surge due to the support of the 111.00 level.
Afterwards, as soon as the pair passes the 111.00 level, it will continue its descent.
Hourly Chart
On the daily chart, the rate had passed the support of the 100 and 200- day simple moving averages. This signals that on a larger scale the decline could continue.Meanwhile, the surge of the USD/JPY has to be charted. One version of the possible ascending pattern has been drawn and added to the daily chart.
Daily chart
Trader open position volume on the Swiss Foreign Exchange remained short on Friday, as 66% of the volume was short on USD/JPY.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were set to sell. Namely, 57% of orders were short.
Note that traders had gone short even before the bounce off from the 112.00 level began. The open positions were most likely in the green since then.