The USD/JPY passed the resistance of the 104.00 level at midnight to Monday. During the morning hours of Monday's trading, the pair was testing the resistance of the 104.20 mark.
Meanwhile, the currency exchange rate had broken the upper trend line of the medium scale channel up pattern.
Economic Calendar
During the week, there will be minor data sets published, which could cause initial reactions of up to 20 pips. Traders with close by tight stop losses should take into account the times of the macroeconomic data releases.
On Wednesday, the United States Bureau of Labor Statistics is set to publish the Consumer Price Index and Core Price Index at 13:30 GMT.
Afterwards, at 13:30 GMT, expect the weekly US Unemployment Claims. Despite the attention this release gets, we do not recommend monitoring it closely. The USD/JPY has moved only 3.6 to 8.1 pips on the release since December 10.
The week will end with the publication of the US Retail Sales and US Core Retail Sales at 13:30 GMT. In November and December, these data sets caused an increase of volatility above the average.
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 broke the upper line of the medium-term descending channel.It is likely that the exchange rate could continue to extend gains in the nearest future. In this case the rate could face the resistance level—the weekly R1 at 104.53.
If the given level does not hold, the currency pair could target the 105.00 level. Otherwise, the pair could bounce off to the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 103.33/103.83 range.
Hourly Chart
On the daily candle chart, the rate pierced the resistance of the 55-day simple moving average just above the 104.00 mark.
The next resistance on the chart was the upper trend line of the channel down pattern, which has guided the rate since June.
Daily chart
On Monday, on the Swiss Foreign Exchange around 66% of volume was in long positions.
At mid-day on Friday, the sentiment was 64% long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 67% to sell.