The US Federal Reserve Rate cut has caused a decline of the USD/JPY, which by the middle of Thursday's trading session had reached the 108.20 level.
Moreover, the decline was expected to continue and reach the 108.00 level.
This event has caused moves from 26.7 to 49.8 pips since June 2019.
Also on Friday, the ISM Manufacturing PMI survey results will be published at 14:00 GMT. The PMI release has caused reactions from 13.9 to 49.5 base points since June of this year.
For more detailed information take a look at the 28.10-01.11 Event Historical Reactions publication.
Read More: 28.10-01.11 Event Historical Reactions
USD/JPY short-term daily review
On Thursday, the USD/JPY was declining. At the time of the review, the rate had reached the 108.20 level.The decline was expected to continue and reach the support of the weekly R2 simple pivot point at the 108.04 level and the psychological support of the 108.00 mark.
Afterwards, the rate could either trade sideways just above the 108.00 level or drop below it and head to the support levels that were located near 107.80.
Hourly Chart
On the daily candle chart, the currency exchange rate has been beaten down by the 200-day simple moving average.
Meanwhile, the rate remains in a long term ascending channel pattern, in the borders of which the pair could trade until the middle of November. In addition, the lower trend line of the pattern is set to strengthen the support of the range from 107.80 to 108.00.
Daily chart
Read More: Technical Analysis
Traders go short
Since the middle of Monday's trading, on the Swiss Foreign Exchange USD/JPY open position volume was balanced. 50% of open volume was long and 50% was short.
On Thursday, the situation changed, as 53% of volume was in short positions.
Meanwhile, trader set up orders were mostly bullish. Namely, in the 100-pip range 87% of pending orders were to buy and 13% were to buy.
Previously, 63% of orders were to sell.