On Tuesday, the USD/JPY retraced back down to find support in the 55-hour SMA and the 105.20 level. Afterwards, by the start of the day's US trading hours, the rate had reached above the 105.70 mark.
In the near term future, the rate could test the resistance of the 106.00 mark.
Economic Calendar
The week is expected to have a lot of data releases, which could impact the currency exchange rate.
On Wednesday, at 13:30 GMT, the US Retail Sales and Core Retail Sales could cause a move of 5.3 to 11.2 pips, as it has done since September. However, at the same time, the US Producer Price Index and Core Producer Price Index are set to be published. This event has caused moves from 4.4 to 14.8 pips.
If both data sets reveal a positive or negative surprise, compared to the market forecast, the impact could be combined. On the other hand, the data could contradict one another and cancel out the effect of an impact.
On the same day, at 19:00 GMT the FOMC Meeting Minutes PDF document will be released. Note that the impact of the meeting minutes occurs slowly not suddenly, as the market participants read and interpret the meeting minutes.
On Thursday, market participants are set to watch the weekly US Unemployment Claims at 13:30 GMT. However, this event has not caused any volatility since January 21, when a 10.4 pip move occurred.
The week will end for the USD/JPY with the US PMIs at 14:45 GMT. The release could cause a move from 3.0 to 28.6 pips. However, the November 28.6 pip move appears to be an anomaly, as without it the range would be 3.0 to 7.6 pips.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
By the start of the US trading, the rate was heading higher, as it had no resistance as high as the 106.00 level.If the 106.00 level provides resistance to the currency exchange rate, the pair could retrace back down to the weekly R1 simple pivot point at 105.62. If the pivot point doesn't provide support, the rate could reach the 55-hour SMA.
On the other hand, in the case of the pair passing the 106.00 level, it could reach for the resistance of the weekly R2 simple pivot point at 106.28.
Hourly Chart
On the daily candle chart, the 200-day simple moving average's resistance has been broken. The rate no longer has additional technical resistance on this chart, as the daily SMA's have been left below/
Meanwhile, on Tuesday it was spotted that the currency exchange rate has been surging in a channel up pattern since the start of 2021.
Daily chart
On Tuesday on the Swiss Foreign Exchange 65% of open position volume was in short positions.
On Monday, the sentiment was 60% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 60% to sell.
The orders were previously 54% to buy.