The USD/JPY has broken free from trading near the 105.00 level, as the rate has surged to the 105.40 mark.
I the near term future, the rate was expected to consolidate before it would resume its surge.
Economic Calendar
The week is expected to have a lot of data releases, which could impact the currency exchange rate.
On Wednesday, at 13:30 GMT, the US Retail Sales and Core Retail Sales could cause a move of 5.3 to 11.2 pips, as it has done since September. However, at the same time, the US Producer Price Index and Core Producer Price Index are set to be published. This event has caused moves from 4.4 to 14.8 pips.
If both data sets reveal a positive or negative surprise, compared to the market forecast, the impact could be combined. On the other hand, the data could contradict one another and cancel out the effect of an impact.
On the same day, at 19:00 GMT the FOMC Meeting Minutes PDF document will be released. Note that the impact of the meeting minutes occurs slowly not suddenly, as the market participants read and interpret the meeting minutes.
On Thursday, market participants are set to watch the weekly US Unemployment Claims at 13:30 GMT. However, this event has not caused any volatility since January 21, when a 10.4 pip move occurred.
The week will end for the USD/JPY with the US PMIs at 14:45 GMT. The release could cause a move from 3.0 to 28.6 pips. However, the November 28.6 pip move appears to be an anomaly, as without it the range would be 3.0 to 7.6 pips.
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
During Monday morning hours, the USD/JPY currency pair jumped to the 105.40 mark.It is likely that the exchange rate could face the resistance level—the weekly R1 at 105.62. Thus, the rate could bounce off to the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP and the Fibo 23.60% in 104.75/105.00.
In the meantime, if the predetermined resistance level does not hold, the currency pair could continue to extend gains in the nearest future. In this case a possible upside target is the 105.80/106.00 range.
Hourly Chart
On the daily candle chart, the 100-day simple moving average provided the rate with support at 104.40 and caused the recent retracement back up.
On Monday, it could be observed that the currency exchange rate would face the resistance of the 200-day simple moving average, which was set to strengthen the 105.50 mark.
Daily chart
On Friday on the Swiss Foreign Exchange 62% of open position volume was in short positions.
On Monday, the sentiment was 60% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 54% to buy.