During the early hours of Monday, the USD/JPY found support in the 100-hour simple moving average. The SMA stopped the decline of the rate.
In the near term future, the SMA was set to be watched, as it could cause a surge of the USD/JPY.
Economic Calendar
On Thursday, at 12:30 GMT a group of minor US data sets is scheduled to be published. The set will consist of US Producers Price Index, Core Price Index and Unemployment claims. In most cases these data releases cause insignificant moves.
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Click on the link below to see the historical reaction tables.
USD/JPY short-term daily review
During today's morning, the pair was testing the 100-hour SMA near 106.20.From the one hand, it is likely that some upside potential could prevail in the market, and the exchange rate could reach the psychological level at 106.60.
On the other hand, note that the rate is pressured by the 55-hour SMA near 106.25. Thus, the pair could trade sideways in the short term.
Hourly Chart
On the daily candle chart, the pair is testing the resistance of the 55- and 100-day simple moving averages. These SMAs caused the decline of the rate in late July, and kept the rate down throughout August.
Daily chart
On Friday, traders of the Swiss Foreign Exchange were neutral, as 57% of all open position volume was in short positions.
On Monday, the sentiment was 60% short.
Meanwhile, trader set up pending orders in the 100-pip range were 52% to buy.