The USD/JPY has ignored the technical levels that were expected to push it down. The rate has surged up to the 109.80 level.
If the rate manages to pass the resistance levels at 109.80, it could reach the 110.23 level.
The Federal Reserve released the FOMC Meeting Minutes data, where the US policymakers provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interests rates.
The US policymakers showed that they were in no rush to change interest rates, despite the fact that the US economy remains to strengthen. Members of the Federal Open Market Committee voted on leaving the rates unchanged, as they continue to use "wait-and-see" approach.
Since November 2017 this event has caused on the EUR/USD moves from 6.8 to 11.9 pips during the five minutes after the release. Note that a move below ten pips on the EUR/USD during five minutes happen often without any data being published.
The week will end with the Canadian GDP publication at 12:30 GMT. This event has caused moves from 21 to 64 pips since December.
USD/JPY short-term daily review
On Thursday morning the USD/JPY stood at the resistance of the 200-hour simple moving average and a monthly pivot point at 109.82.If this level gets broken, the rate will have no technical resistance as high as the 110.23 level. In theory, that level would then be reached.
Meanwhile, note that the 110.00 level is most likely going to provide psychological resistance. br>
On the other hand, the rate might trade sideways below the 109.80 level.
Hourly Chart
On the daily candle chart the rate has reached previous low levels.Meanwhile, note that the recent surge up to the 100-day simple moving average that was followed by a decline reduced the pressure of the rate being oversold.
Daily chart
By the middle of Wednesday's London trading session the Swiss Foreign Exchange sentiment had become long. 64% of total open position volume was in long positions.
These positions gained during the recent surge.
On Thursday, traders were still long. 63% of open position volume was in long positions.
Meanwhile, trader set up pending orders were neutral, as 51% of pending commands in the 100-pip range were set to sell.