The USD/JPY currency exchange rate found enough support in the 200-hour simple moving average to surge above the resistance of a channel up pattern's upper trend line, the weekly R1 simple pivot point at 109.97 and the 110.00 mark.
On Tuesday morning, the rate retraced down to the 110.00 level and confirmed it as support by bouncing off it.
Economic Calendar
On Tuesday, at 12:30 GMT, the US Retail Sales and US Producers Price Indices are expected to be released. The Retail Sales have caused moves from 9.3 to 17.7 pips since January. The PPI has moved the USD/JPY from 9.3 to 21.7 pips during this year.
On Wednesday, the top event of the week would occur. At 18:00 GMT, the US Federal Funds Rate and Fed Statement could cause a move from 7.8 to 34.5, as it had done since November 2020.
On Thursday, the US Unemployment Claims could cause a move from 7.4 to 21.7 pips.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
In the case of surging, the pair would face the resistance of the weekly R2 simple pivot point at 110.23. If the pivot point fails, the rate could reach for the 110.50 level.Meanwhile, a potential decline would look for support in the 110.00 level and the weekly R1 simple pivot point at 109.97.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the pair is surging in the borders of a channel up pattern, which has guided it since the middle of April. In the meantime, the rate has additional support from the 55-day simple moving average at 109.25.In the case of the channel holding and the rate surging in its borders, a potential target would be the 2020 high zone near the 112.00 level.
Daily chart
On Monday, traders on the Swiss Foreign Exchange were 71% short on USD/JPY, as 71% of open position volume was in short positions.
On Tuesday, the sentiment was 67% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 55% to sell.