The fundamental announcement made by the FOMC on Wednesday caused a surge, which managed to push the currency exchange rate through the various technical resistance levels just below 111.60.
In regards to the near term future, the pair is expected to get squeezed in.
Census Bureau released the US Core Durable Goods Orders data that came out better-than-expected of 0.4% compared with forecast 0.2%.
The US Durable Goods Orders reached 2.7% in March. This is the strongest growth since July. According to analysts, the rise was driven by the growing demand for commercial aircraft. Economists are expecting that the US manufacturing, weakened by slower global economic growth and trade wars, will begin to recover in following months to support the economy.
US data next on Friday
On Thursday, the Bank of England announced their monetary policy data and information at 11:00 GMT. Moreover, the Governor of the bank will speak at 11:30 at a press conference.On Friday, the US Employment data sets will be published at 12:30 GMT. This event is considered the second most important release for the USD. However, due to three data sets having individual impact on the USD the range of the volatility increase is wide during the data release.
Meanwhile, check out the previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
USD/JPY short-term daily review
On the hourly chart the rate is squeezed in between the 55 and 200-hour simple moving averages at 111.42 and 111.70.Meanwhile, in the middle of the mentioned range the monthly Pp and the 100-hour SMA are located at. The rate largely ignores these levels.
In general, watch out for a break out to the upside or down during the near future.
Hourly Chart
On the daily candle chart, the USD/JPY is bouncing around the 200-day SMA, which is located at 111.48. The rate has to break free from this level to reveal its direction.Meanwhile, the rate has moved below the lower trend line of a dominant ascending channel pattern.
Daily chart
On the Swiss Foreign Exchange, 55% of the total open position volume was in short positions.
Previously, 57% of open position volume was short. The sentiment decreased only slightly during the recent surge.
Meanwhile, trader set up pending orders were bearish, as 57% of pending commands in the 100-pip range were set to sell.