- The Swiss traders are 66% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are set to buy in 61% of cases
- US FOMC Meeting Minutes will be published at 19:00 GMT
After touching the 114.00 level the USD/JPY currency exchange rate began a retreat downwards. By the middle of Thursday's trading the decline had ended just above the 113.20 mark.
Latest Fundamental Event
The Bureau of Economic Analysis released US Prelim GDP data that came out lower than expected of 3.5 compared with forecasted 3.6%.
The Bureau of Economic Analysis noted: "Real gross domestic product (GDP) increased 3.5 percent in the third quarter of 2018, according to the "second" estimate released by the Bureau of Economic Analysis. The growth rate was unrevised from the "advance" estimate released in October. In the second quarter, real GDP increased 4.2 percent. "
US FOMC meeting minutes will be published at 19:00 GMT
On Thursday, the only notable macroeconomic scheduled event, but not a data release, will be the FOMC Meeting Minutes release at 19:00 GMT.Last, but most important for data release traders, will be the Canadian GDP data release at 13:30 GMT. This event is expected to cause the most volatility that a data release can cause. Although, it will be only observable on Canadian Dollar pairs.
These events will be covered live by Dukascopy Analytics. The live coverages will begin ten minutes before the event. They can be watched on the Dukascopy Webinars platform and the YouTube channel.
USD/JPY short term daily review
During Wednesday's trading session, the currency exchange rate passed through the support of the weekly R2 to end the trading session at the 113.54 mark. On Thursday morning, the US Dollar depreciated to pass through the support of the weekly R1 to trade at the 113.27 mark.In regards to the near-term future, in all likelihood, the US Dollar will trade between the weekly R1 at 113.36 and the weekly R2 at 113.74. Moreover, the 55-hour SMA should resist the currency pair to prevent the rate from surge above the weekly R2.
On the other side, the resistance of the weekly R1 at 113.36 could push the US Dollar to trade outside of the previously drawn pattern.
Hourly Chart
The previously described resistance of the daily chart has worked. The currency exchange rate has clearly confirmed the existence of a resistance line on the larger scale.
Meanwhile, note that the 55-day SMA is set to provide the rate with support at 113.00.
Daily chart
The Swiss Foreign Exchange sentiment remains short on the USD/JPY. By the middle of Thursday's trading session traders were 66% short on the pair.
Meanwhile, trader pending orders in the 100-pip range are mostly set to buy. Namely, 63% of trader pending orders in that range were set to buy the USD/JPY.
The previously set up sell orders were gone, signalling a change in the short sentiment. Namely, that the take profits of the short positions are close by.