During today's morning, the USD/JPY currency pair jumped to the psychological level at 108.20.
It is likely, that some upside potential could prevail in the market in the short term.US Advance GDP data release on focus
On Thursday, the US Core Durable Goods Orders will be published at 12:30 GMT. Previously, the given release caused only a four-pip move.
The week will end with the US Advance GDP data release on Friday at 12:30 GMT. Last data release caused a 23-pip move in the USD/JPY exchange rate.
Click Here: Economic Calendar Overview 19/07
USD/JPY short-term daily review
During the previous trading session, the USD/JPY currency pair traded sideways around the psychological level at 107.90. During today's morning, the pair breached the short-term descending trend south.It is unlikely, that the exchange rate could decline due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 107.78/107.99 range.
It is expected, that the rate could continue to extend gains. A possible upside target is the resistance formed by the weekly R1 and the Fibonacci 38.20% retracement located circa 108.40.
Hourly Chart
The daily chart was updated at mid-day on Thursday. In general, the rate is in a large scale descending channel that has guided the pair since late February.
Meanwhile the rate is surging in a smaller scale ascending channel pattern.
Note, that the rate is pressured by the 55-day SMA, currently located at 108.61. Also, the rate might reverse south from the Fibonacci 38.20% retracement at 108.43.
Daily chart
Read More: Technical Analysis
Traders are long on USD/JPY
On Tuesday, 74% of open USD/JPY position volume on the Swiss Foreign Exchange was located in long positions.
Meanwhile, trader set up pending orders were bearish, as in the 100-pip range 57% of pending orders were set to sell and 43% were to buy.