By the middle of Friday's trading session, USD/JPY remained near the previous day's trading range, as it had consolidated by retracing up to the resistance of the 110.00 level.
Meanwhile, the rate was still being pushed down by the 55-hour simple moving average.
Bureau of Labor Statistics released the US PPI data, which came out in line with expectations of 0.2%.
According to the release: "The Producer Price Index for final demand rose 0.2 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.6 percent in March and 0.1 percent in February. On an unadjusted basis, the final demand index increased 2.2 percent for the 12 months ended in April."
US CPI ends the week
At 12:30 GMT the Canadian Employment data should cause a move of about forty pips.
At the same time the US Consumer Price Index release should cause a move of up to twenty pips.
Watch this week's economic calendar analysis and leave comments with questions about the specifics.
USD/JPY short-term daily review
On Thursday, the USD/JPY exchange rate traded sideways near the support level—the Fibonacci 50.00% retracement at 109.58.During Friday's morning, the rate was testing the resistance level formed by a combination of the weekly S3, the monthly S2 and the 55-hour SMA at 109.97.
If the given resistance holds, it is likely, that the currency pair could surpass the given support and decline. The nearest potential downside target is the 109.50 mark.
However, if the given support holds, it is expected, that the pair could continue to trade sideways.
Hourly Chart
On the daily candle chart, it can be seen that the rate has fallen below all of the daily chart's simple moving averages. It indicates that the currency pair is oversold.Daily chart
On Friday, on the Swiss Foreign Exchange, 56% of the total open position volume was in long positions.
Meanwhile, trader set up pending orders were neutral, as 51% of pending commands in the 100-pip range were set to buy.