Economic Calendar
Watch out for the publication of the US Producer Price Index data on Wednesday at 13:30 GMT. The data will reveal inflation at the production level.
In addition, the US Retail Sales data is set to be published together with the PPI. The retail sales are set to signal whether or not the US consumers are continuing to purchase goods, despite the ongoing inflation.
Hourly Chart
A move of the rate above 128.50 could encounter resistance in the 129.00 level, the weekly simple pivot point at 129.39 and the approaching 100-hour simple moving average. Higher above, note the 130.00 mark, which has acted as support in early January.
On the other hand, a decline of the US Dollar against the Japanese Yen might look for support in the 127.22/127.45 range. Further below, take into account the 127.00 level.
USD/JPY daily chart's review
On the daily candle chart, the pair is approaching the support zone of the May and June low levels at 126.35/126.95. Further below, the 125.00 mark might act as support.On the other hand, a recovery of the pair could find resistance not only in the 130.00 mark, but also the support and resistance zone at 130.50/131.40.
Daily chart
After the US CPI release, on the Swiss Foreign Exchange, traders were 68% short, as that amount of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 64% to sell the USD against the JPY.
On Tuesday, the open positions were 58% short and pending orders were 52% to buy.