The USD/JPY was plummeting on Wednesday, as by the middle of the day's trading session the currency exchange rate had reached the 108.00 level.
At that level the rate met with the technical support of the 200-hour simple moving average, which caused a pause of the decline.US Advance GDP data release on focus
On Thursday, the US Core Durable Goods Orders will be published at 12:30 GMT. Previously, the given release caused only a four-pip move.
The week will end with the US Advance GDP data release on Friday at 12:30 GMT. Last data release caused a 23-pip move in the USD/JPY exchange rate.
Click Here: Economic Calendar Overview 19/07
USD/JPY short-term daily review
During the previous trading session, the USD/JPY currency pair traded sideways around the psychological level at 108.20.During Wednesday's morning, the pair was testing the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 107.78/108.05 range.
If the given support holds, it is expected, that a reversal north could occur in the nearest future. Note, that the exchange rate is pressured by the weekly R1 a 108.35. Otherwise, the rate could target the psychological level at 107.60.
Hourly Chart
The daily chart was updated at mid-day on Thursday. In general, the rate is in a large scale descending channel that has guided the pair since late February.
Meanwhile the rate is surging in a smaller scale ascending channel pattern.
Note, that the rate is pressured by the 55-day SMA, currently located at 108.61. Also, the rate might reverse south from the Fibonacci 38.20% retracement at 108.43.
Daily chart
Read More: Technical Analysis
Traders are long on USD/JPY
Since Tuesday, 74% of open USD/JPY position volume on the Swiss Foreign Exchange was located in long positions.
Meanwhile, trader set up pending orders were bearish, as in the 100-pip range 52% of pending orders were set to sell and 48% were to buy.