The recovery of the USD/JPY encountered resistance just below the 110.00 mark. The resistance zone below the 110.00 level kept the rate down during the previous week.
On Monday, the currency exchange rate declined and reached the support of the previously passed zone above the 109.20 level.
Economic Calendar
On Tuesday, the US Consumer Price Index and Core Consumer Price Index could cause moves on all USD assets and pairs. The USD/JPY has moved from 4.8 to 27.1 pips on the release since November 2020.
On Thursday, the US Retail Sales and Core Retail Sales are also bound to influence the value of the US Dollar. The rate has moved from 9.3 to 16.7 pips on the release.
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
In the case of the rate passing the 109.20 level, the pair could once again find support in the 109.00 level, which previously reversed a decline.On the other hand, if the support holds, the rate could face various resistance levels from the 109.60 up to the 110.00 levels.
Hourly Chart
On the daily candle chart, the rate is declining in the borders of a channel up pattern after bouncing off the resistance line of the pattern.
Meanwhile, next notable resistance cluster on the daily candle chart is the zone that surrounds the 112.00 mark. The zone consists of the 2019 and 2020 high levels. Zoom out to see how the rate acted near this level during both of those years.
Daily chart
Since Friday, traders were 69% short on USD/JPY.
The Swiss Foreign Exchange open positions have been mostly short for more than a month. Traders were expecting a retracement down.
However, the rate should go back to approximately 108.00 for these traders to break even.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 64% to buy.