Meanwhile, before the drop, 54% of Dukascopy traders were short. After the event, 58% were in short positions. It appears that traders had benefited.
Economic Calendar
After the US reveal their policy, the rest of the world decides how to react on Thursday. Namely, the Swiss National Bank at 08:30 GMT, the Bank of England at 12:00 GMT and the European Central Bank at 13:15 GMT are all set to make rate announcements. The CHF, GBP and EUR are set to act to the rate announcements.
However, in most cases these banks do not surprise the financial markets. Moreover, they are all expected to follow the example of the Fed and keep their rates unchanged.
Meanwhile, note that the ECB President and Vice President are set to host a press conference at 13:45 GMT. Sometimes Christine Lagarde makes comments that impact the Euro and European stock indices.
On Friday, the markets could move if one of the Markit Institute Flash Services and Manufacturing PMI survey results reveal a surprise. Starting from 08:15 GMT up to 14:45 GMT the institute will release data for Eurozone countries, the United Kingdom and the United States.
USD/JPY hourly chart analysis
An extension of the ongoing decline would find support in round exchange rate level. Most notably, the 140.00 mark is expected to act as support. In addition, note the weekly S2 at 138.79.On the other hand, a recovery of the US Dollar against the Yen would also face round exchange rate levels until it reaches the combination of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point all in the 144.40/144.65 range.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the USD/JPY passed below the support of the 200-day simple moving average. Meanwhile, the recent fundamental recovery has ignored the 144.60/145.95 support and resistance range.In general, fundamentals from the Bank of Japan and the Federal Reserve are impacting the broader picture of the financial instrument.
Daily chart
Before the Fed announcement, traders were 54% short, but pending orders in the 100-pip range around the current rate were 55% to sell.
After the Fed, traders were 58% short and orders were 52% to buy.
It appears that the sell orders were executed and additional USD/JPY bears were riding the decline.