- The Swiss traders are 63% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are set to sell in 55% of cases
- Canadian data ends the week
The most notable fact noticeable on the USD/JPY charts is that the technical trend lines are holding. Namely, there is a dominant trend line holding the pair down and a junior channel up pattern's support line keeping the rate from falling down. Eventually these technical levels will face one another, as the lines will intersect. At that time a break out will occur.
Latest Fundamental Event
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.
The minutes said, "Almost all participants expressed the view that another increase in the target range for the federal funds rate was likely to be warranted fairly soon".
Canadian GDP ends the week
Last, but most important for data release traders, will be the Canadian GDP data release at 13:30 GMT. This event is expected to cause the most volatility that a data release can cause. Although, it will be only observable on Canadian Dollar pairs.The event will be covered live by Dukascopy Analytics. The live coverage will begin ten minutes before the event. It can be watched on the Dukascopy Webinars platform and the YouTube channel.
USD/JPY short term daily review
During Thursday's trading session, the currency exchange rate broke the weekly R1 at 113.36 to end the trading session at the 113.37 mark. On Friday morning, the US Dollar was located near the weekly R1 at 113.36 to trade at the 113.39 mark.In regards to the near-term future, it is expected that the US Dollar will trade sideways to stay near the weekly R1 at 113.36 due to the strong resistance and the support levels of the technical indicators. Most likely, the currency exchange pair will be trading at the 113.40 level during the trading day.
On the other side, the stronger support level of the 200-hour SMA could help the rate to break the resistance of the 55-hour SMA to push the rate to trade at 113.60.
Hourly Chart
The previously described resistance of the daily chart has worked. The currency exchange rate has clearly confirmed the existence of a resistance line on the larger scale.
Meanwhile, note that the 55-day SMA is set to provide the rate with support at 113.00.
Daily chart
The Swiss Foreign Exchange sentiment remains short on the USD/JPY. On Friday, 63% of traders were shorting the pair.
In the meantime, trader pending buy orders have decreased. Namely, 63% of trader pending orders in the 100-pip range were set to buy the USD/JPY on Thursday. On Friday, 57% of trader orders were set to buy.
In general, some minor buying has occurred during the last 24 hours.