By the middle of Wednesday's London trading session, the currency exchange rate had reached the 107.80 level. Moreover, it had no technical resistance levels that could slow down the surge as high as 108.00.
Economic Calendar
This week there are couple of events that could move the USD/JPY pair.
On Wednesday, September 11, the US Producer Price Index data will be released at 12:30 GMT. Since February, the USD/JPY rate has been moved from 3.9 to 31.9 pips by the event.
On Thursday, September 12, the US Consumer Price Index will be published at 12:30 GMT. Last time, this data release caused a 23-pip move.
The week will end with the US Retail Sales data release at 12:30 GMT on Friday, September 13.
USD/JPY short-term daily review
On Wednesday morning, the USD/JYP paused at the 107.80 level. The rate was expected to trade sideways at this level before it resumes its surge.Next target for the surge was the weekly R2 of the simple pivot points at 108.13.
Meanwhile, note that the trading sideways could continue as long as it takes the 55 and 100-hour simple moving averages to move up and reduce overbought pressure.
Hourly Chart
On the daily candle chart, the pair is heading to the resistance of a dominant channel down pattern, which should be met at 108.00.
Due to that fact the daily candle chart should be mainly focused on.
Daily chart
Read More: Technical Analysis
Traders remain long on USD/JPY
On Wednesday, 59% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were set to sell. Namely, in the 100-pip range 69% of pending orders were set to sell and 31% were to buy.