On Friday, the rate bounced off the 106.25 level and began a decline. By the middle of Monday's GMT trading hours, the rate had shortly reached below the 106.00 level.
In theory, the rate should surge. However, the previous attempt to move higher was stopped by the 106.30 level.
Economic Calendar
This 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
Given that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs in the 106.15 area, it is likely that some downside potential could prevail in the market. In this case the rate could gain support from the weekly S1 at 105.85.If the given support level holds, it is likely that the US Dollar could trade sideways against the Japanese Yen within the following trading session.
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 Friday, traders of the Swiss Foreign Exchange were bearish, as 61% of all open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were 58% to buy.