The USD/JPY currency pair failed to surpass the resistance level formed by the weekly R2 and the monthly PP at 107.65.
It is likely that some downside potential could prevail in the market within the following trading session.
Economic Calendar
This week, monthly US inflation and retail sales data sets are bound to cause notable reactions, as they have done in the past. Namely, US CPI on Tuesday, US PPI on Wednesday and US Retail Sales on Friday are being released at 12:30 GMT.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair raised to the resistance level formed by the weekly R1 and the monthly PP at 107.65. During Tuesday morning, the pair reversed south.
On the one hand, it is likely that some downside potential could prevail in the market, and the exchange rate could try to surpass the support area formed by the weekly R1, the 55-hour SMA and the Fibo 38.20% in the 106.86/107.20 range.
On the other hand, it is likely that the currency pair could gain support from the 107.40 level and trade sideways in the short run. If the given resistance does not hold, the pair could reach the 108.00 mark.
On the daily candle chart, the exchange rate gained support from the monthly S1 at 105.40.
Meanwhile, the 55-, 100- and 200-day moving averages formed the resistance area in the 107.70/108.25 range.
Daily chart
On the one hand, it is likely that some downside potential could prevail in the market, and the exchange rate could try to surpass the support area formed by the weekly R1, the 55-hour SMA and the Fibo 38.20% in the 106.86/107.20 range.
On the other hand, it is likely that the currency pair could gain support from the 107.40 level and trade sideways in the short run. If the given resistance does not hold, the pair could reach the 108.00 mark.
Hourly Chart
On the daily candle chart, the exchange rate gained support from the monthly S1 at 105.40.
Meanwhile, the 55-, 100- and 200-day moving averages formed the resistance area in the 107.70/108.25 range.
Daily chart
Read More: Technical Analysis
Traders are neutral on USD/JPY
On Tuesday, trader open position volume on the Swiss Foreign Exchange was 54% long.
Traders had been almost neutral since Tuesday.