Economic Calendar
This week, the top event is scheduled for Thursday. At 13:30 GMT, the United States Consumer Price Index is set to be published. This data set reveals how prices have changed at the consumer level. It is watched by the Federal Reserve to determine the future course of the US monetary policy.
On Friday, at 13:30 GMT, inflation at the producer level will be revealed, as the US Producer Price Index will be published. It is considered that producer level inflation eventually turns into consumer inflation, as producers increase consumer goods prices.
Lower than expected or at forecast inflation is expected to cause a decline of the US Dollar, as it shows that the Federal Reserve can cut interest rates. On the other hand, a return of inflation is set to cause a surge of the USD, as the Fed has to keep rates high or even return to rate cuts.
USD/JPY hourly chart analysis
The resistance of the 144.30/145.00 range is strengthened by the 50 and 100-hour simple moving average. A breaking above this range is expected to face resistance in the 146.00 mark where the initial Friday's surge reversed. Higher above, note the weekly R1 simple pivot point at 146.97 and the 147.00 level.On the other hand, a decline is set to look for support in the 143.50 level and the weekly simple pivot point at 143.61. Below these levels, support is expected to be found in the 200-hour simple moving average and the 143.00 level.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the USD/JPY has passed above the resistance line that has kept the rate down since the pair booked the high level on November 12. An extension of the ongoing move could encounter resistance in the 200-day simple moving average near 145.00 and the 144.60/146.00 range.On the other hand, any decline is expected to find support in the 140.00 level. If the 140.00 mark does not act as support, note the support and resistance range at 137.30/139.40.
Daily chart
On Tuesday, trader open position volume showed that Dukascopy traders were 66% long.
Meanwhile, pending orders in the 100-point range around the rate were 55% to buy the pair.