The surge of the USD/JPY ended at the resistance of a 61.80% Fibonacci retracement level at the 109.83 level. This technical level caused a decline.
By the middle of Monday's GMT trading hours, the decline had passed support levels near 109.30 and was expected to reach for the 109.00 mark.
Economic Calendar
During the week, the action on the economic calendars will start and most likely end on Wednesday. At 18:00 GMT the US Federal Reserve is scheduled to make a rate announcement and FOMC Statement.
Prior to that, a minor reaction could be caused by the US CPI at 12:30 GMT.
In addition, economic calendars show the US PPI and Unemployment Claims on Thursday. The last PPI release caused a move below normal volatility.
USD/JPY short-term daily review
At mid-day on Monday, the support of a pivot point at 109.43 and the 55-hour simple moving average at 109.30 failed to stop the rate's decline.
In theory, the pair should reach for the 100-hour SMA at 109.02 and the weekly simple pivot point at 108.94.
On the daily candle chart, the rate had left below it the daily simple moving averages. This factor indicate that the rate is overbought.
Daily chart
In theory, the pair should reach for the 100-hour SMA at 109.02 and the weekly simple pivot point at 108.94.
Hourly Chart
On the daily candle chart, the rate had left below it the daily simple moving averages. This factor indicate that the rate is overbought.
Daily chart
Read More: Technical Analysis
Traders short the pair
On Monday, on the Swiss Foreign Exchange 58% of open position volume was in short position.
Meanwhile, 59% of set up pending trade orders in a 100 pip range around the exchange rate were set to buy.
Previously, 80% of orders were to sell.