The USD/JPY continued its recovery on Monday, as it reached up to the 111.30 level.
Although, by the middle of the day's trading the pair was being pushed down by the 55-hour simple moving average at 111.32.
The Federal Reserve released the US FOMC Meeting Minutes last Wednesday. The Fed officials provided in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
"Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve's asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserve's balance sheet," the document said.
Busy start of the week
This week will be unusual. The majority of the notable macroeconomic events will take place at the start of the week.
Namely, on Monday, the US Retail Sales and Core Retail Sales are set to be released at 12:30 GMT. This event might cause a reaction of up to 20 base points.
On Tuesday, the day will start with the UK GDP and Manufacturing Production data release at 09:30 GMT.
Afterwards, at 12:30 GMT the US Consumer Price Index and Core Consumer Price Index will be published.
The week's important events will end already on Wednesday. At 12:30 GMT the US Durable Goods Orders and the US Producers Price Index will be released.
For more information watch the weekly calendar analysis stream on our YouTube channel.
USD/JPY short term daily review
During Friday's trading session, the currency exchange rate passed through the support level of the 200-hour simple moving average to fall to 111.00. On Monday morning, the rate was trading at the 111.21 mark. Note, the chart was fully reviewed to make some corrections to the chart!In regards to the near-term future, it is expected that the 55-hour simple moving average will retrace the rate to push it to trade sideways at the 111.00 level.
However, today's US Retail Sales and Core Retail Sales data release at 12:30 GMT might push the US Dollar to appreciate against the Japanese Yen to trade between the simple moving average at the 111.40 level.
Hourly Chart
On the daily chart, the rate had passed the support of the 100 and 200- day simple moving averages. This signals that on a larger scale the decline could continue.Meanwhile, the surge of the USD/JPY has been charted. One version of the possible ascending pattern has been drawn and added to the daily chart.
The lower trend line of the pattern is part of a support cluster from the 110.50 to 110.60 level.
Daily chart
Trader open position volume on the Swiss Foreign Exchange remained short on Monday, as 63% of the volume was short on USD/JPY.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were set to sell. Namely, 57% of orders were short.
Note that traders had gone short even before the bounce off from the 112.00 level began. The open positions were most likely in the green since then.