After reaching the high level of 111.90 during the midnight hours from Thursday to Friday, the USD/JPY retreated down to the 111.70 level. At that level the pair traded sideways.
In general, the USD/JPY was expected to resume the surge as soon as the 55-hour simple moving average would approach and provide support to the rate.
The Bureau of Labor Statistics released US PPI data that came out lower-than-expected of 0.1% compare to forecasted 0.2%. Note, the US Core PPI was released at the same time with the US PPI.
"The Producer Price Index for final demand edged up 0.1 percent in February, seasonally adjusted," the U.S. Bureau of Labor Statistics announced today and added: "Final demand prices fell 0.1 percent in both January and December. On an unadjusted basis, the final demand index moved up 1.9 percent for the 12 months ended in February."
No more data this week
The week's important macroeconomic data releases have ended. Join on Monday to the Economic Calendar analysis stream on the Dukascopy Analytics YouTube channel to watch what is next.In the meantime, take into account that the Brexit turmoil is still occurring in the British Parliament. That event has taken up most attention of all Forex fundamental traders.
USD/JPY short term daily review
During Thursday's trading session, the currency exchange rate was supported by the 200-hour simple moving average to end the trading session at 111.80 as it was expected! On Friday morning, the rate was trading sideways to stay at the 111.65 mark.In regards to the near-term future, it is expected that the rate will try to reach the weekly R1 at the 111.95 mark.
Besides, the 55-hour and the 200-hour simple moving averages will support the surge during the day!
Hourly Chart
On the daily chart, the rate had additional technical support. The 100 and 200-day simple moving averages were located at 111.30 and 111.40 levels.Meanwhile, the pair's recent decline has not touched the lower trend line of the dominant channel up pattern. The rate, in theory, should reach it and bounce off it.
Daily chart
Trader open position volume on the Swiss Foreign Exchange remains short, as on Friday 64% of the volume was short on USD/JPY.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were set to sell. Namely, 56% of orders were short.