On Wednesday the USD/JPY traded sideways below a strong resistance cluster near 110.80.
In general, the rate was expected to decline, as the resistance cluster had pushed the rate down without even being properly reached.
The Federal Reserve releases US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
Donald Trump, the President of US wrote in a tweet: "The only problem our economy has is the Fed, They don't have a feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can't score because he has no touch - he can't putt!"
US GDP might impact USD/JPY
This is the last week of March and due to that reason it is expected to be quiet for macroeconomic fundamental data releases. However, there are a couple of notable events worth watching.On Thursday, the US Final GDP data will be published at 12:30 GMT. The event might cause moves on various currency exchange rates from ten to twenty base points.
On Friday, there will be two releases. First will be the UK Current Account publication at 09:30 GMT. This event is expected to cause a small reaction because still most attention of fundamental traders is on the Brexit events not macroeconomic data.
That is because no historical data can be used for forecasting a currency strength in a situation where the base of the underlying economy is about to change so drastically.
Afterwards, on the same day, the top release of the week will occur. At 12:30 GMT the Canadian GDP will be published. The Canadian events are the only ones, which have constantly created exchange rate adjustments of more than 40 pips.
For more information watch the week's calendar review on YouTube by clicking the link below.
USD/JPY short term daily review
During Tuesday's trading session, the currency exchange rate was supported by the weekly pivot point to end the trading session at 110.50. On Wednesday morning, the rate was located above the monthly pivot point at the 110.64 mark.In regards to the near-term future, most likely, the trade will be trading sideways to stay between the 61.80% Fibo at the 110.77 mark and the monthly pivot point at the 110.53 mark.
However, the resistance levels of the 61.80% Fibo and the 200-hour simple moving average could retrace the US Dollar to depreciate against the Japanese Yen to the 110.40 level.
Hourly Chart
On the daily chart, the rate had broken the resistance of the 55-day simple moving average. In fact on Wednesday the technical indicator was providing support to the currency exchange rate and kept it from declining.Daily chart
On Wednesday, the total open position volume on the Swiss Foreign Exchange was 53% short on the USD/JPY.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were also almost neutral. Namely, 52% of all orders were set to sell.