Since the start of Monday's trading, the USD/JPY has continued to trade almost flat below the 106.35 level.
Due to that reason, the previous forecasts had not changed. It was speculated that the rate could be pushed up by the hourly simple moving averages.
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
The rate continues to trade near the 55 and 100-hour simple moving averages, which from time to time provide support. However, there has been a development on Tuesday.The 55 and 100-hour SMAs have approached one another, which indicates that the support of these technical levels is now combined. Namely, the SMAs could push the rate higher.
On the other hand, if the rate passes both of the SMAs, it could decline to the 200-hour simple moving averages and the weekly and monthly pivot points near 106.00.
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
Since Monday, traders of the Swiss Foreign Exchange were bearish, as 60% of all open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were 53% to sell.