Economic Calendar
Watch out for the US inflation data. On Wednesday, the US Producer Price Index is set to be published at 12:30 GMT.
Also on Wednesday, the US Federal Reserve will publish the FOMC Meeting Minutes. The minutes could reveal more information about the US monetary policy. The publication is scheduled for 18:00 GMT.
On Thursday, at 12:30 GMT, the US Dollar will react to the combination of the US Consumer Price Index and the weekly Unemployment Claims data. Markets will be looking at this release as the top one of the week.
Hourly Chart
A move above the 149.50 mark is expected to face major resistance in the 150.00 mark. Both the retail sector and large banks consider the 150.00 level, where the Bank of Japan intervenes in the forex market and strengthens the Yen.
On the other hand, a decline of the rate below 148.15 could look for support in the 148.00 level and the weekly S1 simple pivot point at 147.64.
USD/JPY daily chart's review
On the daily candle chart, the rate passed below the lower trend line of the channel up pattern which captures the recent month surge. However, it appears that the 1998 high level has acted as support.In addition, note the approaching 50 and 100-day simple moving averages that are located near 146.90 and 144.60.
Daily chart
On Monday, traders were bearish on USD/JPY, as 67% of open positions on the Swiss Foreign Exchange were short.
In the meantime, trader pending orders in the 100-point range around the current exchange rate were 64% to buy.
By mid-Tuesday, 61% were short and orders were already 65% to buy. It appears that the patience of the short sellers is running out.