After finding support in the 107.40 mark on Thursday, the USD/JPY experienced a sharp fundamental surge, which reached above the 108.00 level. However, immediately afterwards, the pair returned to trade in the channel down pattern.
On Friday morning, the rate was bouncing around between the support levels at 107.60 and the resistance of 107.70.
Economic Calendar On Friday, a notable reaction of above then pips could be created by the US Durable Goods orders.During the next week the US Advance GDP on Wednesday at 12:30 GMT. This is the first of three types of US quarterly GDPs. The Advance release reveals the first Gross Domestic Product numbers of a quarter. The following Preliminary and Final GDPs usually reveal slight adjustments. In general, the data will reveal the first impact of the coronavirus on the US economy.
Afterwards, at 18:00 GMT, the Federal Reserve is bound to make a rate statement, which is bound to react to the ongoing economic decline. Take into account that the Federal Reserve Rate announcement and FOMC Statement are set to be followed by a Press Conference at 18:30 GMT.
On Friday, the US ISM Manufacturing PMI is scheduled to be published at 14:00 GMT.
USD/JPY short-term daily review
On Friday morning the rate was bouncing between support levels at 107.60 and the resistance of 107.70.In the case of the rate breaking the resistance of 107.70, the rate would test the upper trend line of the channel down pattern near 107.80.
On the other hand, if the pair passes the support of the 107.60 level, it would test the support of the 107.40 level.
Hourly Chart
On the daily candle chart, the rate faces the resistance of the daily simple moving averages. The SMAs were located from 108.29 to 108.80 levels.
Daily chart
Read More: Technical Analysis
Short sentiment declines
On Thursday, 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment declined to 56% short. A part of the bearish traders closed their short positions during the jump to the 108.00 mark.