During Friday morning, the USD/JPY currency pair declined below 105.50.
Note that the pair is trading near the 2019 minimum located at 104.67.
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
Today, 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.
Next week is expected to be relatively calm, as there is only one event that could impact the USD/JPY pair.
On Wednesday, March 11, the US CPI and Core CPI will be published at 12:30 GMT.
Meanwhile, next week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 09.03-13.03 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair dropped to the 106.00 level. During Friday morning, the pair declined below 105.50.It is likely that the exchange rate could gain support from the weekly S2 at 104.92 and reverse north in the short term. In this case it is unlikely that the rate could exceed the weekly S1 at 106.50.
However, if the given support level does not hold, the US Dollar could continue to depreciate against the Japanese Yen. In this case the currency pair could renew the 2019 low at 104.67.
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
Read More: Technical Analysis
Long sentiment increases
On Thursday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range 75% of pending orders were to buy and 25% were to sell.