Economic Calendar
On Thursday, the US Advance GDP might impact the markets via an adjustment of the value of the US Dollar. Better GDP means that the US does not need to cut rates, which would keep the Dollar higher. Bad GDP data indicates that the Fed can cut, which would reduce the value of the USD.
On Friday, at 12:30 GMT, the top event of the week will take place. The US Core PCE Price Index will move the markets. The Core Personal Consumption Expenditure Index is expected to impact the markets by revealing whether inflation has increased or continues to decline. In general, the markets expect a reading of a monthly price increase of 0.2%. If the number is higher, the Dollar should surge. A reading below +0.2% is set to cause a decline of the USD.
USD/JPY hourly chart analysis
The ongoing decline could look for support in the 154.00 level and the weekly S2 simple pivot point at 153.75, before the rate reaches the supporting trend line and the 153.50 or 153.00 level.In the meantime, a potential recovery of the US Dollar against the Japanese Yen would have to break the 155.00 level. Higher above, resistance is expected from the 157.70/157.85 range, the weekly S1 simple pivot point at 155.61. Moreover, these levels could soon be strengthened by the descending trend line and the 50-hour simple moving average.
Hourly Chart
USD/JPY daily chart's review
On Monday, it appeared that the 100-day SMA was acting as support, despite being ignored during late last week's trading. On Tuesday, the SMA was already passed.Daily chart
On Monday, traders were still bullish as 56% of volume was long. Meanwhile, pending orders were 57% to buy.
By mid-Wednesday, traders were still long, as 58% were in long positions and pending orders were 57% to buy.