The USD/JPY on Friday remained in the previous day's trading range. Namely, it fluctuated between 110.40 and 110.95.
The rate is set to get additional support from the 55-day simple moving average, which on Friday was located near the 110.20 level. The approaching of the level might end the sideways trading.
The Federal Reserve releases US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
Donald Trump, the President of US wrote in a tweet: "The only problem our economy has is the Fed, They don't have a feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can't score because he has no touch - he can't putt!"
Canadian data ends the week
On Friday, the last event of the week will be the Canadian CPI and Core Retail Sales release at 12:30 GMT.For more information watch this week's economic calendar analysis stream.
USD/JPY short term daily review
During Thursday's trading session, the currency exchange rate traded sideways to end the trading day at 110.60. On Friday morning, the rate was located at the monthly pivot point at the 110.53 mark.In regards to the near-term future, most likely, the rate will pass through the support level of the weekly S2 at 110.40 to depreciate to the weekly S3 at the 109.91 mark. It is expected that the rate will end the trading session at the 110.00 level.
On the other hand, the support level of the weekly S2 at 110.40 might support the rate to push it to trade sideways at 110.60.
Hourly Chart
On the daily chart, the ascending channel pattern has been broken. The event resulted in a decline of the pair down to the 110.40 level.In regards to the future forecasting, the daily chart helps with the simple moving averages. The 55-day SMA is providing support at 110.20. Meanwhile, the 100 and 200-day SMAs are providing resistance at 111.20 and 111.40.
Daily chart
On Friday, of the total open position volume on the Swiss Foreign Exchange, 59% was short.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were set to sell. Namely, 55% of orders were short.