The bounce off from the resistance zone provides another reference point for a more precise marking of the channel up pattern, which has guided the pair throughout February. At mid-day on Friday, the USD/JPY was trading sideways near the 116.00 level, as it was approaching the lower trend line of the channel pattern.
Economic Calendar
On Tuesday, at 13:30 GMT, the US Producers Price Index data will reveal, how high is the inflation at the production level.
Possibly the top event of the week will take place on Wednesday at 19:00 GMT, as the US Federal Open Markets Committee Meeting Minutes will be published. The Meeting Minutes provide an insight to the decisions of the US Federal Reserve.
On Thursday, the US Unemployment Claims could cause an adjustment of the USD value.
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USD/JPY short-term review
If the lower trend line of the pattern acts as support, the rate would once again test the resistance of the 116.25/116.35 zone, before aiming at the weekly R2 simple pivot point at 116.43 and the 116.50 mark. In addition, note that the trend line could be strengthened by the 50-hour simple moving average.However, a breaking of the pattern might result in a decline to the support of the weekly R1 simple pivot point at 115.83. Further below, note the resistance zone at 115.67/115.70 and the 100-hour simple moving average near 115.56.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has reached the early 2022 high level and passed the November and January high level at 115.50. The rate needs to pass the 116.00 mark to book new high levels.Daily chart
On Friday, on the Swiss Foreign Exchange, traders were short, as 72% of open position volume was in short positions.
Meanwhile, on Friday, trader set up pending orders in the 100-pip range around the rate were 50% to buy and sell the USD against the JPY.