As expected, the USD/JPY reached the 108.00 level. Moreover, it reached slightly below it, where the decline found support in the freshly calculated monthly pivot point at 107.94.
On Friday, the rate was trading with low volatility between the mentioned monthly pivot point and the resistance of a weekly PP at 108.04.
The Federal Reserve released the US Federal Funds Rate data, which came out in line with the expectations of 1.75%.
According to the official release: "Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 1-1/2 to 1-3/4 percent."
Economic Calendar
This event has caused moves from 26.7 to 49.8 pips since June 2019.
Also on Friday, the ISM Manufacturing PMI survey results will be published at 14:00 GMT. The PMI release has caused reactions from 13.9 to 49.5 base points since June of this year.
Meanwhile, take into account that the next week's reaction tables have been published. Take a look at the 04.11-08.11 Event Historical Reactions publication.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair dropped to the support level formed by the monthly PP and the weekly S2 at 108.00. During Friday morning, the pair was testing the given support.If the given support level holds, it is likely that a reversal north could occur in the nearest future. However, it is unlikely that the exchange rate could exceed 108.60 due to the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP and S1, the Fibo 38.20%.
If the given support level does not hold, it is likely that the US Dollar could depreciate against the Japanese Yen within the following trading session. Note that the rate could gain support of the weekly S3 at 107.83.
Hourly Chart
On the daily candle chart, the currency exchange rate has been beaten down by the 200-day simple moving average.
On Friday, the rate pierced the lower trend line of the channel up pattern, which guided the rate since August. It is a signal that the large scale surge is over.
However, as the interest rates have been cut by the Federal Reserve, it is clear why the pattern was broken. The US Dollar has been devalued by the central bankers of the United States.
Daily chart
On Friday, on the Swiss Foreign Exchange USD/JPY open position volume was almost neutral. 52% of open volume was long and 48% was short.
Meanwhile, trader set up orders were mostly bullish. Namely, in the 100-pip range 76% of pending orders were to buy and 24% were to sell.