The USD/JPY ended trading flat at the 106.00 level at GMT midnight between Thursday and Friday.
The rate drooped to the support of the 100-hour simple moving average at the 105.80 level, from which it began a recovery.
Economic Calendar
The week's notable events are set to start on Tuesday. At 12:30 GMT, the US Consumer Price Index could cause a noteworthy move. In September and August this event caused a slight increase of volatility. The rate has moved 6.0 to 11.8 pips on the event.
On Wednesday, the US Producers Price Index is scheduled to be published at 12:30 GMT. The last release occurred during a major increase of volatility. The USD/JPY has moved 4.7 to 14.8 pips during the last five announcements. However, the September move of 14.8 was an anomaly.
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT. Since September, the publication caused moves of 4.2 to 14.8 pips.
On Friday, the US Retail Sales data is capable of causing slight increases of above normal volatility. However, in most cases the market barely reacts to this data. Namely, there are no sudden asset price and exchange rate adjustments.
The USD/JPY has moved from 6.1 to 13.6 pips on the release.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
It is likely that the exchange rate could gain support from the 100– and 200-hour moving averages in the 105.70 area. Thus, the rate could trade upwards in the short term.Note that the currency pair would have to exceed the weekly R2 at 106.22. If the given resistance level holds, it is likely that the pair could maintain its consolidation in the short run.
Hourly Chart
On the daily candle chart, the rate is located above the support of the 55-day simple moving average. In the meantime, the rate could face the resistance of the 100-day SMA at 106.50.
Daily chart
Since Wednesday traders of the Swiss Foreign Exchange were short, as 64% of all open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were 67% to sell.