The USD/JPY currency pair remains under pressure of the 55-hour moving average near 107.50.
During Thursday morning, the pair was testing the Fibo 23.60% at 107.02. If the given level holds, the pair could consolidate.
Fed Rate Cut
The Federal Open Market Committee cut the Federal Funds Rate to a target range of 1.00% to 1.25% at an unscheduled emergency meeting.
The US policymakers announced the cut of the interest rate by a half of a percentage point in response to the increasing economic threat from the coronavirus outbreak.
Economic Calendar
On Friday, the US employment data will be released at 13:30 GMT. The event has caused moves from 19.5 to 49.8 pips since October.
This event consists of three data sets – the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
Meanwhile, the week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair consolidated in the 107.50 area. During Thursday morning, the pair was testing the Fibo 23.60% at 107.02.Note that the exchange rate is pressured by the 55-hour SMA near 107.45. Thus, some downside potential could prevail in the market. In this case the rate could gain support from the weekly S1 at 106.50.
However, if the given Fibonacci retracement holds, it is likely that the US Dollar could continue to consolidate against the Japanese Yen within the following trading session.
Hourly Chart
On the daily candle chart, the rate has left above it the resistance of the daily simple moving averages. The SMA's were left behind above the 108.00 level.
Daily chart
On Thursday, 62% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range 62% of pending orders were to buy and 38% were to sell.