After a second attempt to pass a line on the hourly chart the USD/JPY declined on Thursday.
The rate had passed hourly chart's support levels and was set to fall down to the 111.65 level. At that level the weekly pivot point and the 200-hour simple moving average were located at.
The Bureau of Labor Statistics released US CPI data that came better than expected of 0.4% compare with forecasted 0.3%. Note, that the US Core CPI was released at the same time with the US CPI.
The data release caused a minor, but still notable reaction on the USD/JPY charts. Namely, the rate surged by 11 pips before retreating back down.
US data will impact the USD/JPY on Thursday
This week's data releases will end on Thursday.At 08:30 GMT, the UK Retail Sales will be published.
Afterwards, the Canadian and US Retail Sales will be published at 12:30 GMT. Both data sets combined could cause a move on the USD/CAD of up to 30 pips.
Note that the US data is set to influence all USD currency exchange rates.
Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
USD/JPY short term daily review
The resistance on the hourly chart held its ground. It has forced the rate into a decline.The decline is expected to fall down to the support of the weekly pivot point and the 200-hour simple moving average at 111.65.
Afterwards, the mentioned level will have to be watched for signals that indicate the future direction of the currency pair.
Hourly Chart
On the daily chart there is no significant additional information.It is only worth mentioning that the 200-day simple moving average was located at the 111.50 level. If the rate declines, this SMA will provide support.
Daily chart
Since Wednesday, 71% of the total open position volume on the Swiss Foreign Exchange was in short positions.
Traders were both expecting a bounce off from the resistance line and were shorting the pair expecting a retracement down after the previously experienced surge.
They had succeeded in this on Thursday, as the rate went down.
Meanwhile, trader set up pending orders were no longer bearish. Instead they had become almost neutral, as 51% of pending commands in the 100-pip range were set to sell.