On the USD/JPY charts it resulted in the pair sharply breaking the recent high level range, the 2022 high level of 152.00 and the weekly R1 and R2 simple pivot point. Namely, nothing could stop the adjustment. Moreover, after the events the rate continued higher, as it broke the 153.00 level. On Friday morning, the 153.00 level turned into support and the rate passed above the weekly R3 simple pivot point at 153.25.
Meanwhile, it has been noted that before the events, 63% of Dukascopy traders were long and after the events, 68% were long. Traders had taken advantage of the surge.
Economic Calendar
Next week, notable data releases start already on Monday. At 12:30 GMT, the US Retail Sales data will be published. Higher than expected retail sales indicate at potential increase in inflation. Retailers could increase prices and cause inflation while consumer demand is strong.
On Thursday, a minor move could occur due to the weekly Unemployment Claims release at 12:30 GMT. More employed people indicate at more consumer demand that also pushes prices higher.
USD/JPY hourly chart analysis
If the surge continues, the rate could aim at new high levels not seen for decades. It is highly likely that round price levels like the 153.50, 154.00 and 154.50 slow down the rate, before the major 155.00 would be reached.In the case of a consolidation by declining, the pair is expected to look for support in the 50-hour simple moving average and the 153.00 level. Further below, note the weekly R2 simple pivot point at 152.60 that could be soon strengthened by the 100-hour simple moving average. Even further below, note the 152.00 mark, the weekly R1 simple pivot point at 152.11 and the 200-hour simple moving average.
Hourly Chart
USD/JPY daily chart's review
The daily candle chart of USD /JPY shows the prior high levels that could all turn into support in the case of a decline. Meanwhile, note the ascending 50-day simple moving average that has passed above 150.00.Daily chart
During Monday's trading, trader open position volume showed that Dukascopy traders were 63% long.
Meanwhile, pending orders in the 100-point range around the rate were 60% to sell the USD/JPY.
After the inflation data release, positons were 68% long and orders were 58% to sell.
USD/JPY traders have been riding the surge upwards, but appear to have close by stop losses.