The 111.50 level held after five attempts to break it. The USD/JPY has plummeted, as it passed all of the support levels from 110.80 to 111.30.
By the middle of Thursday's GMT trading hours, the currency exchange rate was about to approach support levels that were located from 109.18 to 109.38.
Economic CalendarThe week will end with the US Final GDP data release on Thursday at 12:30 GMT. This event also us unlikely to impact the USD/JPY, as since December 2018 it had moved the rate from 5.5 to 8.9 pips.
Meanwhile, next week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair breached the medium-term ascending channel south. During Thursday morning, the pair dropped to the 110.00 level.From the one hand, it is likely that the exchange rate could continue to trade downwards. In this case the rate could face the support cluster formed by the weekly PP, the 200-hour SMA in the 109.18/109.38 area.
On the other hand, if the 110.00 level holds, it is likely that a reversal north could occur in the nearest future. In this case the currency pair could face the resistance formed by the 55– and 100-hour SMAs.
Hourly Chart
On the daily candle chart, the rate has the additional technical support, which is provided by the 55 and 100-day simple moving averages at 109.00 and the 200-day SMA at 108.29.
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.
In general, USD/JPY were expecting the rate to decline instead of surging above the 111.50 mark. They had gained profits on Thursday.
However, they had not taken profits, as 68% of open position volume was in short positions. Some had opened additional shorts, as the rate passed the technical support levels.