Not only did the USD/JPY reach the 106.00 level, as it was forecast, but the pair also reached the 106.20 level just before midnight to Wednesday.
Afterwards, the 106.20 level provided resistance, which caused a retracement down.
Economic Calendar
On Wednesday, at 13:30 GMT, the US Retail Sales and Core Retail Sales could cause a move of 5.3 to 11.2 pips, as it has done since September. However, at the same time, the US Producer Price Index and Core Producer Price Index are set to be published. This event has caused moves from 4.4 to 14.8 pips.
If both data sets reveal a positive or negative surprise, compared to the market forecast, the impact could be combined. On the other hand, the data could contradict one another and cancel out the effect of an impact.
On the same day, at 19:00 GMT the FOMC Meeting Minutes PDF document will be released. Note that the impact of the meeting minutes occurs slowly not suddenly, as the market participants read and interpret the meeting minutes.
On Thursday, market participants are set to watch the weekly US Unemployment Claims at 13:30 GMT. However, this event has not caused any volatility since January 21, when a 10.4 pip move occurred.
The week will end for the USD/JPY with the US PMIs at 14:45 GMT. The release could cause a move from 3.0 to 28.6 pips. However, the November 28.6 pip move appears to be an anomaly, as without it the range would be 3.0 to 7.6 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 daily review
The USD/JPY currency pair has touched the psychological level at 106.20.It is likely that the exchange rate could face the resistance level—the weekly R2 at 106.28. The rate could bounce off the pivot point and decline to the support area formed by the 55-, 100– and 200-hour SMAs, the weekly R1 and PP, as well the Fibo 23.60% in the 105.03/105.62 range.
In the meantime, if the predetermined resistance level does not hold, the currency pair could continue to extend gains in the short run. Note that the nearest resistance level, formed by the Fibo 38.20% and the weekly R3, is located at 106.86.
Hourly Chart
On the daily candle chart, the 200-day simple moving average's resistance has been broken. The rate no longer has additional technical resistance on this chart, as the daily SMA's have been left below.
Meanwhile, on Tuesday it was spotted that the currency exchange rate has been surging in a channel up pattern since the start of 2021.
Daily chart
On Tuesday on the Swiss Foreign Exchange 65% of open position volume was in short positions.
On Wednesday, the sentiment was 67% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 62% to sell.
The orders were previously 60% to sell.