On Tuesday morning the USD/JPY was testing the resistance of the 55- hour SMA near the 110.15 level.
If it gets passed, the rate could jump to reach the 110.45 level. On the other hand, the SMA might push the currency pair down to the 109.60 mark.
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.
Donald Trump, the President of US wrote in a tweet: "The only problem our economy has is the Fed, They don't have a feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can't score because he has no touch - he can't putt!"
US GDP might impact USD/JPY
This is the last week of March and due to that reason it is expected to be quiet for macroeconomic fundamental data releases. However, there are a couple of notable events worth watching.On Thursday, the US Final GDP data will be published at 12:30 GMT. The event might cause moves on various currency exchange rates from ten to twenty base points.
On Friday, there will be two releases. First will be the UK Current Account publication at 09:30 GMT. This event is expected to cause a small reaction because still most attention of fundamental traders is on the Brexit events not macroeconomic data.
That is because no historical data can be used for forecasting a currency strength in a situation where the base of the underlying economy is about to change so drastically.
Afterwards, on the same day, the top release of the week will occur. At 12:30 GMT the Canadian GDP will be published. The Canadian events are the only ones, which have constantly created exchange rate adjustments of more than 40 pips.
For more information watch the week's calendar review on YouTube by clicking the link below.
USD/JPY short term daily review
The short term forecast for the USD/JPY is all about the 55-hour simple moving average at 110.15.If this technical resistance level gets passed, the rate will surge to the weekly PP at 110.45, which by the time of a surge up should be strengthened by the 100-hour SMA.
On the other hand, the simple moving average could force the rate down into another decline down to the support levels near the 109.60 mark.
Hourly Chart
On the daily chart, the rate faces the resistance of another 55-period SMA. Namely, the 55-day simple moving average is providing resistance to the rate at 110.25.Daily chart
On Monday, the total open position volume on the Swiss Foreign Exchange was balanced. Namely, the shorts and longs were balanced 50 vs 50.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were set to sell. Namely, 58% of orders were short.