Meanwhile, it appears that support and resistance is found from time to time in the 50 and 100-hour simple moving averages. On Thursday, the rate was being squeezed in between the moving averages.
Economic Calendar
This week, notable events are over. Next week, economic data could start impacting the markets on Tuesday.
On Tuesday, the Markit institute will release its Purchasing Managers Index results. Despite being called an index, it is actually a survey of managers. Two sectors are surveyed. Namely, the Services and Manufacturing firms are asked how they are seeing the future. A reading above 50.0 shows growth, but a reading below 50.0 equals expectations of a sector decline. However, the market reacts to whether the reading is above or below the expected survey result.
At 13:45 GMT, all of financial markets could move due to the publication of the United States Manufacturing and Services sectors Purchasing Managers Indices.
On Thursday, watch the publication of the US Advance quarterly GDP publication at 12:30 GMT. Note that the United States GDP data is published over the span of a quarter by giving updated data each month. First release has the most impact and is called the Preliminary. It is followed by the Advance GDP release, which is expected on Thursday. Afterwards, the GDP publications end with the Final GDP, and the cycle starts again with a new quarter.
Also on Thursday, watch the US Pending Home Sales data publication at 14:00 GMT. In the recent months, this previously ignored data set has started to impact the US Dollar.
On Friday, one of the top US data releases will occur. The Core Personal Consumption Expenditure will reveal more detailed impact of inflation on the US consumer. US monetary policy makers have been observing this index instead of the Consumer Price Index to decide upon their policy.
However, before the US inflation, the Bank of Japan is set to have its say, as the Bank of Japan Policy Rate will be released in the morning. Note that the BoJ does not set a certain time for their publications and Press Conference to avoid market volatility increases.
USD/JPY hourly chart analysis
If the rate breaks above the 154.70/154.80 range, the 155.00 mark is expected to act as resistance. Higher above, note the 155.50 level and the weekly R3 simple pivot point at 155.75On the other hand, a decline of the US Dollar against the Japanese Yen would have to pass the 100-hour SMA and the 153.85/153.95 range and the weekly R1 simple pivot point. Below these levels, the pair is set to look for support in the 153.50 level and the 200-hour simple moving average. Further below, note the 153.00 level and the weekly simple pivot point at 152.72.
Hourly Chart
USD/JPY daily chart's review
The daily candle chart of USD /JPY shows the prior high levels that could all turn into support in the case of a decline. Meanwhile, note the ascending 50-day simple moving average that has passed above 150.00.Daily chart
During Monday's trading, trader open position volume showed that Dukascopy traders were 69% long.
Meanwhile, pending orders in the 100-point range around the rate were 58% to sell the USD/JPY.
On Thursday, positons were 72% long and orders were 52% to sell.
USD/JPY traders have been riding the surge upwards, and already increased their position amount. Meanwhile, the lack of sell orders indicates that stop losses are farther below.