On Monday morning, the USD/JPY currency pair reversed north from the support level - the weekly S2 at 109.13.
It is likely that the US Dollar could extend gains against the Japanese Yen in the short run. However, the pair would have to surpass the weekly S1 at 109.32.
This week, there are only three events that could affect the USD/JPY pair.
On Tuesday, December 31, the US CB Consumer Confidence will be published at 15:00 GMT.
On Friday, January 3, the ISM Manufacturing PMI survey results will be released at 15:00 GMT.
At the same day, the FOMC Meeting Minutes data will be published at 19:00 GMT.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 30.12-03.01 Event Historical Reactions
USD/JPY short-term daily review
During last trading session, the USD/JPY currency pair tumbled to the weekly S2 located at 109.13. During Monday morning, the pair was testing the given support.If the given support level holds, it is likely that the exchange rate could trade upwards within the following trading session. Note that the rate could face resistance of the weekly S1 at 109.32.
On the other hand, the US Dollar could consolidate against the Japanese Yen in the short run near the given support. If the given level does not hold, the currency pair could target the weekly S3 at 108.95.
Hourly Chart
On the daily candle chart, the pair has been testing the resistance of the 50.00% Fibonacci retracement level at 109.60 since the middle of December.
Daily chart
Read More: Technical Analysis
Traders remain short
On Monday, 74% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were slightly bullish. In the 100-pip range 56% of pending orders were to buy and 44% were to sell.