The support of the 100-hour SMA held and caused a surge on Monday. By the middle of Tuesday's GMT trading hours, the pair had already almost reached the 106.40 level.
Moreover, the rate had no technical resistance as high as the weekly R1 simple pivot point at 106.65.
Economic Calendar
As the last week of the month, the following week is expected to be a quiet one. However, there are events that should be watched in the case a sharp move occurs.
On Wednesday, at 12:30 GMT traders should watch the release of the US Durable Goods Orders data. The event is capable of causing volatility increases above average level.
On Thursday, the US Preliminary GDP and the US Unemployment claims are set to be published. Due to these events usually not being released at the same time, the past reactions need to be combined. Namely, in the case of the same direction surprise the volatility pips need to be added one to another. On the other hand, different results shown by each data set could cancel one another out.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
Due to the fact that the pair faces no technical resistance as high as 106.65, the USD/JPY should reach this level.However, the rate has surged in a sharp angle, which indicates that it should trade sideways or retrace back, as it is overbought. In the case of a decline, the pair would look for support in the monthly simple pivot point at 106.09 and the 200-hour simple moving average at 106.05.
Hourly Chart
On the daily candle chart, take into account the resistance of the 55 and 100-day simple moving averages at 106.65 and 107.10.
Daily chart
On Tuesday, traders of the Swiss Foreign Exchange were neutral, as 51% of all open position volume was short.
On Monday, the sentiment was 55% short.
Meanwhile, trader set up pending orders in the 100-pip range were 56% to sell.
Previously, the orders were 53% to buy.