By mid-Monday, the rate had reached the resistance of the 146.50 level and the 200-hour simple moving average. During the surge, it was spotted that moving averages and round price levels impacted the rate and acted as both resistance and support.
Economic Calendar
On Tuesday, the US Dollar is set to adjust to the monthly US Consumer Price Index release at 13:30 GMT. Inflation is expected to have been unchanged month on month and an annual decline from 3.2% down to 3.1% is expected. Meanwhile, the market consensus is that core inflation might have increased due to winter increasing demand for energy consumption.
On Wednesday, the top event of them all will take place. The US Federal Reserve will announce its Federal Funds Rate. The central bank is expected to keep the rate at 5.50%. Moreover, note the follow up press conference of the Chairman of the Federal Reserve Jerome Powell. The events are scheduled for 19:00 and 19:30 GMT.
On Friday, the markets could move if one of the Markit Institute Flash Services and Manufacturing PMI survey results reveal a surprise. Starting from 08:15 GMT up to 14:45 GMT the institute will release data for Eurozone countries, the United Kingdom and the United States.
USD/JPY hourly chart analysis
The ongoing recovery has to break the 200-hour simple moving average and the 146.50 mark, before returning to the 150.00 level. However, it is highly likely that resistance would be met in round price levels and the weekly R1 simple pivot point at 147.73.On the other hand, a decline of the US Dollar against the Japanese yen is set to look for support in the 100-hour simple moving average and the 145.50 level. Further below, note the combination of the 145.00 level, the 50-hour simple moving average and the weekly simple pivot point at 144.67.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the USD/JPY passed below the support of the 200-day simple moving average. Meanwhile, the recent fundamental recovery has ignored the 144.60/145.95 support and resistance range.Daily chart
On Monday, traders were 57% short, but pending orders in the 100-pip range around the current rate were 70% to buy.