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USD/JPY drops to 109.60
Fri, 24 May 2019 10:22:12 GMT
Source: Dukascopy Bank SA
 

The USD/JPY has reached a new low level, as on Friday the rate traded in limbo around the 109.60 level.

Namely, the 109.45 level was supporting the rate and the 109.70 level was providing resistance.

Latest Fundamental Event

The Federal Reserve released the FOMC Meeting Minutes data, where the US policymakers provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interests rates.

The US policymakers showed that they were in no rush to change interest rates, despite the fact that the US economy remains to strengthen. Members of the Federal Open Market Committee voted on leaving the rates unchanged, as they continue to use "wait-and-see" approach.

One last data set

The week will end with the US Durable Goods Orders and Core Durable Goods Orders on Friday at 12:30 GMT. This event has been rather non-eventful in the past half a year, as it has caused moves of only five to 18 pips.

USD/JPY short-term daily review

On the hourly candle chart it could be observed on Friday that the rate had plummeted down to the levels near 109.60 and begun to trade around it. In general, this was seen as a wide range consolidation of the decline.

The rate is expected to continue the decline, as soon as time has passed. The start of the decline could be signalled by the passing of the 109.45 level.

On the hand, the rate could wait for the resistance of the hourly simple moving averages first, which would then push the rate down.

Hourly Chart

On the daily candle chart it can be seen that the 100-day simple moving average, which was touched, indicated that the rate is no longer oversold.

Due to that reason, the upwards pressure was removed. It was one of the causes of the massive selling that occurred on Thursday.

Daily chart

Traders continue to long USD/JPY

On Friday, Swiss Foreign Exchange data revealed that traders have remained long on USD/JPY.

Namely, on Friday, 59% of all open position volume was in long positions.

Meanwhile, trader set up pending orders were almost neutral, as 52% of pending commands in the 100-pip range were set to sell.


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