On Monday, the USD/JPY was set to surge. The rate was expected to reach for the resistance of the 110.00 level, as it had passed technical resistance levels that were located from 109.80 top 109.85.
In the near term future, the 110.00 was expected to provide psychological resistance.
Economic CalendarThis 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, the 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
On Friday, the USD/JPY currency pair reversed north from the lower boundary of the medium-term ascending channel. During today's morning, the pair traded near 109.90.It is unlikely that some downside potential could prevail in the market due to the resistance cluster formed by the 55-, 100– and 200-hour SMA, as well the weekly PP in the 109.80 area.
It is likely that some upside potential could prevail in the market in the nearest future, and the exchange rate could target the psychological level at 110.00.
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
Traders short USD/JPY
On Monday, 71% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 65% of pending orders were to sell and 35% were to buy.