The announcement of a decrease of stimulus initially caused a jump of the USD. Afterwards, as the markets realized that the supply of the USD would still grow, the value of the currency started to decline. However, on the USD/JPY charts the initial jump was not reversed, as the certainty of the future caused a broader risk on sentiment, as risk assets surged and the JPY declined due to its safe haven status.
Economic Calendar
The week's notable events will end with the weekly US Unemployment Claims at 13:30 GMT and the US PMIs at 14:45 GMT. These events have rarely caused notable USD moves.
Click on the link below to find out more about data releases of this and other currency exchange rates.
USD/JPY short-term review
In the near term future, if the pair passes the resistance of the post-Fed-spike-high levels at 114.22/114.28, the USD/JPY might reach the weekly R2 simple pivot point at 114.51 and the 114.50 mark. Higher above, the weekly R3 and the 115.00 level could stop a surge.On the other hand, a decline of the US Dollar against the Japanese Yen would most likely look for support in the combination of the 114.00 mark, the weekly R1 simple pivot point at 113.95, the 50-hour simple moving average and the previous December high level zone at 113.88/113.96. Below these levels, the 100 and 200-hour SMAs are located near 113.70 and 113.60.
Hourly Chart
USD/JPY daily chart's review
The USD/JPY currency exchange rate is ignoring the 50-day simple moving, average, which is located at the 113.50 mark.Daily chart
Read More: Technical Analysis
Traders remain short
On Thursday on the Swiss Foreign Exchange, traders were short, as 71% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 56% to buy.
On Wednesday, traders were 71% short, and pending orders were 63% to sell.