On Monday morning, the USD/JPY passed the resistance of the technical levels that were located near the 104.20 mark. Namely, the 100 and 200-hour SMAs and the weekly simple pivot point were passed.
Due to that reason, in theory the currency exchange rate should surge, as it had no technical resistance as high as 104.75.
Economic Calendar
The week is expected to be relatively calm for the USD/JPY pair regards to the economic calendar.
On Thursday, the US CPI data sets and the Unemployment Claims are set to be published at 13:30 GMT.
The week is set to end with the US Producers Price Index on Friday, at 13:30 GMT.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
As the rate has passed the resistance of the 100 and 200-hour SMAs and the weekly simple pivot point above the 104.20 mark, the USD/JPY should surge. A potential surge, from a technical analysis perspective was the weekly R1 simple pivot point at 104.75.On the other hand, the rate could find resistance in the round exchange rate levels like the 104.40 and 104.60, which provided both resistance and support during the previous week.
Hourly Chart
On the daily candle chart, one can observe that the rate faces the additional resistance of the 55-day simple moving average, which was located near the 104.80 level.
Daily chart
On Friday, on the Swiss Foreign Exchange 64% of volume was in long positions.
On Monday, the sentiment was 66% long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 56% to sell the pair.