On Friday morning, by large, the situation on the USD/JPY currency exchange rate charts had not changed. The pair remained above the support of the weekly and monthly simple pivot points and the three hourly simple moving averages.
In theory, the rate should surge. However, the previous attempt to move higher was stopped by the 106.30 level.
Economic Calendar
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.
Next week, on Wednesday, at 12:30 GMT the US Retail Sales and Core Retail Sales data sets are set to be published. Since April, the USD/JPY has moved from 6.1 to 13.6 pips on the announcement.
Wednesday's events are set to end with the most notable event of them all - the Federal Open Markets Committee announcements and the US Federal Reserve Rate Announcement. The USD/JPY moved from 17.6 to 44.6 pips on the announcements that occurred since March.
Afterwards, at 12:30 GMT, the US weekly Unemployment Claims could cause a move. However, despite all pairs moving during the publication, the USD/JPY has remained almost flat.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
In theory, the rate should surge, as it has major technical support provided by the 55, 100 and 200-hour simple moving averages and the weekly and monthly simple pivot points.However, the rate's previous attempt to surge was stopped by the 106.30 level. In addition, note that rate failed to pass the 106.40 and 106.50 levels during the past week. Namely, in the recent past round exchange rate levels stop the USD/JPY.
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 Thursday, traders of the Swiss Foreign Exchange were bearish, as 63% of all open position volume was in short positions.
On Friday, 61% of volume was short.
Meanwhile, trader set up pending orders in the 100-pip range were 53% to buy.