USD/JPY approaches high levels

Source: Dukascopy Bank SA
On Monday morning, the USD/JPY reached above the 145.00 mark and the last week's high level zone at 145.20/145.30 turned into support.

Economic Calendar



This week, the markets are looking forward for the monthly United States inflation and retail sales data. In addition, on Wednesday, the FOMC Meeting Minutes might impact the markets.

On Wednesday, at 12:30 GMT, the US Producers Price Index change will reveal inflation at the production level.

Later on, at 18:00 GMT, the Federal Reserve Federal Open Market Committee Meeting Minutes are going to provide more insight into the decisions of the US monetary policy makers.

On Thursday, the top event of the week will take place. The United States Consumer Price Index is scheduled to be published at 12:30 GMT.

On Friday, at 12:30 GMT, the US Retail Sales data could also impact the financial markets.

Hourly Chart
An extension of the surge of the USD/JPY pair is set to eventually reach the levels, where the Bank of Japan intervened in the Forex market and beat the rate down. Namely, the central bank started buying the Japanese Yen with its reserves, as the USD/JPY reached 145.85/145.90.

However, a decline of the US Dollar against the Japanese Yen would have to pass below the 145.20/145.30 zone, before the 145.00 level is reached.

USD/JPY daily chart's review

On the daily candle chart, the pair pierced the 145.00 mark and was heading to 1998 levels, before the BoJ intervened. It appears that the 145.00 level is where the central bank draws its line and starts to beat the rate down.

Daily chart




Traders are short on USD/JPY

On Monday, on the Swiss Foreign Exchange, traders were 70% 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 57% to sell the USD against the JPY.

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