The USD/JPY managed to pass the resistance cluster that was located from 110.00 to 110.20. The rate managed to do so due to the initial surge that was caused by the US Federal Reserve on Wednesday at 18:00.
However, the jump was followed by a decline. On Thursday, the rate had retreated and traded almost sideways below the 110.00 level.
Economic Calendar
On Thursday, the US Advance GDP at 12:30 GMT is bound to move the US Dollar's value. In addition, at the same time the US Unemployment Claims could cause volatility.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
In the case of a decline, the pair would look for support in the weekly S1 simple pivot point at 109.58 and the 109.60 mark, which provided support on Tuesday.On the other hand, a surge would once again test the resistance of the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point in the 109.93 to 110.14 zone.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the USD/JPY appears to be finding support in the 100-day simple moving average and the 61.80% Fibonacci retracement level at 109.64. Meanwhile, the pair has passed the support of the 55-day SMA.Daily chart
Since Tuesday, traders on the Swiss Foreign Exchange were 65% short on the USD/JPY currency pair.
On Thursday, 61% of open position volume was short.
Meanwhile, SWFX traders set up pending orders in the 100-pip range around the currency exchange rate were 44% to sell and 56% to buy.