The forecast for the USD/JPY has failed. The rate found enough support in the 110.00 level to surge and break various technical resistance levels from 110.25 to 110.80.
On Friday morning, the rate had no technical resistance as high as the 111.20 level.
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!"
No data releases relevant to USD/JPY
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
By the middle of Friday's trading session the USD/JPY traded above the support of the 61.80% Fibonacci retracement level at 110.80.Meanwhile, the closest technical resistance levels to the rate were located near the 111.20 level. Due to that reason the rate was expected to move upwards.
On the other hand, the 111.00 level might provide psychological resistance and force the exchange rate into a decline back down to the Fibonacci retracement level.
Hourly Chart
There is additional information from the daily chart.Namely, near the currency exchange rate the 55-day simple moving average was showing its strength at 110.32. It was serving both as support and as resistance during various periods.
Meanwhile, the 100 and 200-day simple moving averages were expected to provide resistance to the pair. The SMAs were located respectively at 111.06 and 111.42, on Friday.
Daily chart
Since Wednesday, the total open position volume on the Swiss Foreign Exchange was 53% short on the USD/JPY.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were bearish. Namely, 58% of all orders were set to sell.