Moreover, it was spotted on Monday that the rate's flat movements are limited by moving averages that are acting as support and resistance.
Economic Calendar
Watch out for the US inflation data. On Wednesday, the US Producer Price Index is set to be published at 12:30 GMT.
Also on Wednesday, the US Federal Reserve will publish the FOMC Meeting Minutes. The minutes could reveal more information about the US monetary policy. The publication is scheduled for 18:00 GMT.
On Thursday, at 12:30 GMT, the US Dollar will react to the combination of the US Consumer Price Index and the weekly Unemployment Claims data. Markets will be looking at this release as the top one of the week.
Hourly Chart
A potential surge of the US Dollar against the Japanese Yen is set to face the resistance of the 200-hour simple moving average near 149.20 and the 149.50 level. The 149.50 acted as resistance on Friday and stopped the surge that started after the US employment release.
In the case of a USD/JPY decline the rate is set to look for support in the combination of the 50 and 100-hour simple moving average and the weekly simple pivot point near 149.00. Further below, take into account the 148.50 level that appears to be capable of impacting the currency rate.
USD/JPY daily chart's review
On the daily candle chart, the rate passed below the lower trend line of the channel up pattern which captures the recent month surge. However, it appears that the 1998 high level has acted as support.In addition, note the approaching 50 and 100-day simple moving averages that are located near 146.90 and 144.60.
Daily chart
On Monday, traders were bearish on USD/JPY, as 67% of open positions on the Swiss Foreign Exchange were short.
In the meantime, trader pending orders in the 100-point range around the current exchange rate were 64% to buy.