On Monday, the USD/JPY gained support in the 100-hour simple moving average and began a surge. By the middle of the day's GMT trading hours, the pair had reached the 106.20 level.
Economic Calendar
The week ahead is going to be relatively calm on the economic calendar. Most of the events, that could impact the markets, are from the US.
On Tuesday, the US Core PPI and PPI data are going to be released at 12:30 GMT.
On Wednesday, the US Core CPI and CPI data will be released at 12:30 GMT.
On Thursday, the US Unemployment Claims data might affect the market. The release is scheduled to 12:30 GMT.
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
In theory, the currency exchange rate should continue to surge, as it faced no technical resistance as high as the weekly R1 simple pivot point at the 106.50 mark. Moreover, this level could provide psychological resistance.On the other hand, the pair could trade sideways until the support of the 55, 100 and 200-hour simple moving averages catches up with the rate.
Hourly Chart
On the daily candle chart, the rate continues to trade downwards, guided by the descending channel.
It is likely that the pair could gain support from the monthly S2 at 104.18.
Daily chart
On Friday, on the Swiss Foreign Exchange 56% of open position volume was in long positions.
By the middle of Monday's GMT trading hours, the sentiment was 62% long.
Meanwhile, trader set up pending orders in the 100-pip range were 68% to sell. Previously, the orders were 66% to buy.