Economic Calendar
On Friday, the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
Hourly Chart
In the case of the rate resuming the recovery, the pair would have to pass the resistance of the 137.50 level and the 200-hour simple moving average. Higher above, the 138.00 level and the weekly R1 simple pivot point at 138.24 could act as resistance.
Meanwhile, a decline of the USD against the JPY is expected to first look for support in the 136.50 level. Below this level, the 50 and 100-hour simple moving averages, the weekly simple pivot point at 135.93 are expected to strengthen the support of the 136.00 level. The 136.00 level stopped the Friday's fundamental surge.
USD/JPY daily chart's review
On the daily candle chart, the pair has retraced from the 134.00 level up to the resistance of the 200-day simple moving average at 137.40. The SMA is expected to act as resistance.Daily chart
On Monday, on the Swiss Foreign Exchange, traders were 61% short, as that amount of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 73% to buy the USD against the JPY.
On Tuesday, the sentiment was 58% short and orders were 53% to buy.