The USD/JPY has declined, as previously forecast. The rate reached down to almost touch the 110.00 level before ending the decline.
By the middle of the day's trading the pair was reaching for the resistance levels near 110.40. It was expected by Dukascopy Analytics that the rate will bounce off the cluster and begin a decline.
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
By the middle of Thursday's trading session the USD/JPY was about to test the resistance levels near 110.40. At that level the 55-hour simple moving average and the weekly middle pivot point was located at.The rate is expected to bounce off these resistance levels and resume the decline. A decline would be slowed down by the support of the 100-hour simple moving average near 110.25.
On the other hand, if the resistance levels fail, the pair would begin a surge up tot eh 110.70 level, where the 200-hour SMA is located at.
Hourly Chart
There is additional information from the daily chart. Namely, near the currency exchange rate the 55-day simple moving average was showing its strength at 110.32. It was serving both as support and as resistance during various periods.Daily chart
Since 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, 55% of all orders were set to sell.