During the day, the rate had encountered resistance in the 130.70 and 130.80. Meanwhile, support was provided by the previous resistance zone at 130.20/130.50.
Economic Calendar
During the week, most attention will be put on the US Consumer Price Index and Producer Price Index data. The data sets are expected to reveal the inflation in the United States in the aftermath of the first Federal Reserve Rate hike done in March. Consumer Price Index and Core Consumer Price Index number will be published on Wednesday at 12:30 GMT.
On Thursday, at 12:30 GMT, US Producer Price Index and Core Producer Price Index data will reveal inflation levels at the production level. In addition, take into account that the weekly US Unemployment Claims are scheduled to be released at the same time. Note that on their own, the claims have not been capable of increasing volatility. The moves on USD on April 28 were caused by the release of the negative US GDP, not the Unemployment Claims.
To see historical move tables click on the link below.
Hourly Chart
If the pair continues to move higher, it is expected to encounter resistance in the previous high level zone at 131.00/131.25. Afterwards, new highs might be booked at 131.50 and 132.00.
On the other hand, a decline below 130.20/130.50 might find support in the combination of the 50 and 100-hour simple moving averages and the 130.00 mark.
USD/JPY daily chart's review
On the daily candle chart, the pair continues to be surging in a channel up pattern, which captures the rate's moves up since the middle of March. Note that the trend lines of the pattern could act as support and resistance.Daily chart
Since Wednesday, on the Swiss Foreign Exchange, traders were short, as 59% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 68% to buy the USD against the JPY.
On Friday, the situation slightly changed, as open positions were 60% short and pending orders were 61% to buy.