The USD/JPY currency pair breached the falling wedge pattern north and jumped to the weekly R1 at 107.20.
In theory, the pair could continue to trade upwards in the nearest future.
Economic Calendar
This week, monthly US inflation and retail sales data sets are bound to cause notable reactions, as they have done in the past. Namely, US CPI on Tuesday, US PPI on Wednesday and US Retail Sales on Friday are being released at 12:30 GMT.
USD/JPY short-term daily review
During the previous trading session, the USD/JPY currency pair breached the falling wedge pattern north. During Monday morning, the pair surpassed the weekly R1 at 107.20.
It is likely that the exchange rate now could be supported by the weekly R1, thus, some upside potential could continue to prevail in the market. A possible upside target is the resistance level formed by the weekly R2 and the monthly PP at 107.65.
However, if the rate fails to surpass the 107.40 level, it is likely that a reversal south could occur in the nearest future. In this case the rate could gain support from the Fibo 38.20% at 106.86.
On the daily candle chart, the exchange rate gained support from the monthly S1 at 105.40.
Meanwhile, the 55-, 100- and 200-day moving averages formed the resistance area in the 107.70/108.25 range.
Daily chart
It is likely that the exchange rate now could be supported by the weekly R1, thus, some upside potential could continue to prevail in the market. A possible upside target is the resistance level formed by the weekly R2 and the monthly PP at 107.65.
However, if the rate fails to surpass the 107.40 level, it is likely that a reversal south could occur in the nearest future. In this case the rate could gain support from the Fibo 38.20% at 106.86.
Hourly Chart
On the daily candle chart, the exchange rate gained support from the monthly S1 at 105.40.
Meanwhile, the 55-, 100- and 200-day moving averages formed the resistance area in the 107.70/108.25 range.
Daily chart
Read More: Technical Analysis
Traders are neutral on USD/JPY
On Monday, trader open position volume on the Swiss Foreign Exchange was 51% long.
Traders had been almost neutral since Tuesday.