The USD/JPY declined even more than expected during the last 24 hours. Moreover, it continues to plummet, as, at the time of writing, the rate was heading to the 108.00 level.
Moreover, the pair had no technical support levels close by that could stop the decline.
Economic CalendarNext week, data can be ignored, as the fundamental background is so much changed that historical data does not matter.
However, take a look at the list of previously notable events, as the markets will be looking at them to understand the impact of the virus.
USD/JPY short-term daily review
The rate was heading down on Friday. It was expected to be slowed down by the support of round exchange rate levels. For example, by mid-day the rate was headed to the 108.00 level.Afterwards, pay attention, as the rate approaches the 107.50 and 107.00 level. If the rate manages to pass the support of these levels, it would look for support in the simple weekly S1 pivot point at 106.86.
Hourly Chart
On the daily candle chart, the rate has passed the support of the 55 and 100-day simple moving averages near 109.00 level.
Meanwhile, the 200-day SMA was holding on Friday. It was providing support at the 108.29 level.
Daily chart
On Monday, 56% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Tuesday's GMT trading hours, the sentiment was 59% short, and on Wednesday, 64% were short. This trend continued throughout the week.
In general, USD/JPY traders had expected the decline and were correct.
However nobody took profits. Since the middle of Thursday's trading hours, 68% of open position volume was in short positions. The sentiment had not changed during Friday's trading.