The 102.00 level managed to provide enough support for the USD/JPY to recover.
By the middle of Tuesday's GMT trading hours, the rate had reached the resistance of the 100-hour simple moving average at 105.18. If this level would get passed, the 106.00 mark could be reached.
Economic CalendarOn Wednesday, March 11, the US CPI and Core CPI will be published at 12:30 GMT. The USD/JPY had moved at the time of the release from 6.4 to 16.3 pips since October 2019.
Meanwhile, the week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 09.03-13.03 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tested the support level formed by the monthly S3 at 101.61. During Tuesday morning, the pair jumped to the resistance level—the monthly S2 and the 100-hour SMA at 104.56.If the given resistance holds, it is likely that a reversal south could occur in the nearest future. In this case the exchange rate could re-test the given support level.
Otherwise, it is likely that the US Dollar could continue to appreciate against the Japanese Yen. In this case the pair could face the resistance formed by the weekly PP, the monthly S1 and the 200-hour SMA in the 106.32/106.82.
Hourly Chart
On the daily candle chart, Dukascopy Analytics have marked the 100.00 level. This is the low level of 2016. Since 2016 this level has not been approached by the USD/JPY.
Meanwhile, take into account that the 2017 and 2019 low level of 104.60 was passed on Monday.
Daily chart
Read More: Technical Analysis
Long sentiment declines
On Tuesday, 59% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Previously, on Monday, the sentiment was 61% long.