The USD/JPY rate traded sideways on Wednesday. The reason for the fluctuations in the range between 108.80 and 108.90 was the expectations of the US Federal Reserve Rate announcement scheduled for 18:00 GMT.
Economic Calendar This week the rate is bound to be affected by US data and an expected rate cut.On Wednesday, October 30, the US ADP Non-Farm Employment Change data will be published at 12:30 GMT. The USD/JPY has moved from 5.2 to 19.0 pips on the announcement.
On the same day, the US Advance GDP will be published at 12:30 GMT. This is the top US GDP data release. It has caused moves on the Yen chart from 11.1 to 31.2 pips since July 2018.
Moreover, the FOMC Statement and the Federal Funds Rate are scheduled to be published at 18:00 GMT. The announcement has caused reactions from 21.4 to 52.1 base points since January 2019.
On Friday, November 1, the US Employment data set will be on focus - the Average Hourly Earnings, the Non-Farm Employment Change and the Unemployment Rate data will be published at 12:30 GMT.
This event has caused moves from 26.7 to 49.8 pips since June 2019.
Also on Friday, the ISM Manufacturing PMI survey results will be published at 14:00 GMT. The PMI release has caused reactions from 13.9 to 49.5 base points since June of this year.
For more detailed information take a look at the 28.10-01.11 Event Historical Reactions publication.
Read More: 28.10-01.11 Event Historical Reactions
USD/JPY short-term daily review
On Tuesday, the USD/JPY currency pair traded sideways at the weekly R1 at 108.88. During today's morning, the pair was trading at the given level.Note that the exchange rate is supported by the 100-hour moving average, currently located at 108.78. Thus, it is likely that some upside potential could prevail. A possible upside target is the weekly R2 at 109.09.
It is unlikely that bears could prevail in the market within the following trading session, and the US Dollar could drop lower than the 108.57/108.66 area against the Japanese Yen due to the support provided by the 200-hour SMA, as well the weekly PP.
Hourly Chart
On the daily candle chart, it can be observed that the rate is being kept down by the 200-day simple moving average, which has been moving horizontally since October 8 at the 109.00 level.
Meanwhile, the rate remains in a long term ascending channel pattern, in the borders of which the pair could trade sideways until the middle of November.
Daily chart
Read More: Technical Analysis
Traders remain neutral
Since the middle of Monday's trading, on the Swiss Foreign Exchange USD/JPY open position volume was balanced. 50% of open volume was long and 50% was short.
Meanwhile, trader set up orders were bearish. Namely, in the 100-pip range 63% of pending orders were to sell and 37% were to buy.
Previously, 72% of orders were to sell.