The USD/JPY has remained below the 110.00 level. In the meantime, the pair has been approached by the 55-hour SMA and it has made a dip below the 109.65 mark.
In general, it was expected that another attempt to reach the 110.20 level was about to occur.
Economic CalendarThis week's event have been analysed.
On Thursday, the US CPI data sets are set to be published at 13:30 GMT. The USD/JPY has moved from 8.2 to 16.3 pips because of the release.
On Friday the US Retail Sales data will be out also at 13:30 GMT. This event has caused moves on the USD/JPY pairs since September 2019 from 8.7 to 25.4 base points.
Read More: 10.02.-14.02 Event Historical Reactions
USD/JPY short-term daily review
During the previous trading day, the USD/JPY currency pair tested the support level—the Fibo 50.00% at 109.58. During Monday morning, the pair was trading near the given level.Note that the exchange rate is supported by the 100-hour moving averages, currently located at 109.71. Thus, some upside potential could prevail in the market, and the rate could exceed the 110.00 level.
However, note that the currency pair would have to surpass the 55-hour SMA in the 109.85 area. If the given moving average holds, the US Dollar could consolidate against the Japanese Yen.
Hourly Chart
On the daily candle chart, the rate has left below it the daily simple moving averages. This factor indicates that the rate is overbought.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
On Monday, 74% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 66% of pending orders were to sell and 34% were to buy.