USD/JPY breaks pattern

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The lower trend line of the channel up pattern kept the USD/JPY up for 17 hours straight. On Wednesday, at 09:00 GMT, the currency pair passed below the trend line and a sharp decline had started. By 10:00 GMT, the pair had reached below 130.00.

Economic Calendar



On Thursday, the US Advance GDP data is set to reveal whether the United States are or are not experiencing a decline in the Gross Domestic Product at 13:30 GMT. The Advance GDP is the first data set that reveals how the economy has done in the last quarter.

The week will end with the publication of the US Core PCE Price Index. This index is the one being used by the US Federal Reserve to measure the impact of inflation on the consumers. It is seen by some as more important than the CPI. The release is scheduled for 13:30 GMT.

Hourly Chart
The ongoing decline is expected to look for support in the combination of the 100 and 200-hour simple moving averages and the weekly simple pivot point in the 129.10/129.70 range. Further below, note that the 129.00 and 128.50 levels have acted as support and resistance.

On the other hand, a recovery of the US Dollar against the Japanese Yen could encounter resistance in the 50-hour simple moving average near 130.30 and the 130.50 level.

USD/JPY daily chart's review

On the daily candle chart, the pair finds resistance not only in the 130.00 mark, but also the support and resistance zone at 130.50/131.40.
Daily chart



Traders remain short

On Wednesday, on the Swiss Foreign Exchange, traders were 55% short, as that amount of open position volume was in short positions.

Meanwhile, trader set up pending orders in the 100-pip range around the rate were 53% to sell the USD against the JPY.

On Tuesday, the positions were 54% short and orders were 66% to buy.

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