The USD/JPY currency pair consolidated at 109.80.
Given that the pair is squeezed by the 55-, 100- and 200-hour SMAs, it is likely that the pair could continue to consolidate.
Economic CalendarToday, the US Retail Sales data will be out also at 13:30 GMT. This event has caused moves on the USD/JPY pairs since September 2019 from 8.7 to 25.4 base points.
Next week, there is only one event that could influence the USD/JPY rate.
On Wednesday, the Federal Reserve will publish its FOMC Meeting Minutes at 19:00 GMT.
Meanwhile, next week's data is available. Click on the link below to see the historical data tables with the reactions to the events.
Read More: 17.02.-21.02 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tried to surpass the resistance formed by the 55– and 100-hour SMAs in the 109.85 area. During Friday morning, the pair continued to test the given resistance.If the given moving averages hold, it is likely that the US Dollar could continue to trade sideways against the Japanese Yen in the short run.
However, note that the exchange rate could gain support of the 200-hour SMA and breach the given resistance. A possible upside target is the 110.00 level.
Hourly Chart
On the daily candle chart, the rate has left below it the daily simple moving averages. This factor indicates that the rate is overbought.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
On Friday, 73% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 64% of pending orders were to sell and 36% were to buy.