USD/JPY continues to recover

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The pair has moved a bit higher by advancing above 156.00/156.30. Since Friday, the pair has been fluctuating around the 157.00 level, waiting for new fundamentals or approaching technical levels to push it higher.

Economic Calendar



This week, the markets will concentrate first on the US CB Consumer Confidence release on Tuesday at 14:00 GMT. A surprise in the consumer sentiment reading could move the US Dollar.

On Thursday, at 12:30 GMT the publication of the United States Preliminary GDP and Unemployment Claims could impact the market via a move of the USD.

On Friday, the top event of the week will take place, as at 12:30 GMT the US Core Personal Consumption Expenditure Index monthly change will be published. If the data shows that inflation is not decreasing, the US Dollar is bound to surge. Higher than expected inflation is set to pressure the US Federal Reserve to hike the Dollar's base interest rate.

USD/JPY hourly chart analysis

A resumption of the prior surge of the Dollar against the Yen is set to face the 157.50 level and the weekly R1 simple pivot point at 157.59. Higher above resistance could be found in the 158.00 level and the weekly R2 simple pivot point at 158.24.

If the rate declines, it has to first pass the 100-hour simple moving average and the weekly simple pivot point at 156.70 and 156.54. In addition, the 156.50 mark is capable of acting as support. Further below, note the 156.00/156.30 range and the 200-hour simple moving average.

Hourly Chart

USD/JPY daily chart's review

On the daily candle chart, the pair is being pushed up by the 50-day simple moving average. It has acted a support two times in combination with a round and notable exchange rate level. The SMA could push the pair into the prior high of 160.00 unless the Bank of Japan once again intervenes.

 Daily chart



Traders are riding the recovery

Last week, on Monday, traders were long, as 74% of volume was in bullish positions. This week, positions were 75% long.

Meanwhile, pending orders around the current rate were 52% to buy.

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