On Friday, the USD/JPY passed previous low level zones before consolidating by retracing back up to the 113.66 level.
On Monday, the decline of the pair resumed, as the pair reached the 113.10 level. In the near term future, the rate was highly likely set to reach the 113.00 mark.
Economic Calendar
On Tuesday, the US Producer Price Index and Core Producer Price Index at 13:30 GMT could cause minor USD volatility. The USD/JPY has moved from 9.4 to 13.1 on the release.
On Wednesday, at 13:30 GMT, the US Consumer Price Index and Core Consumer Price Index will be released. In addition, the weekly US Unemployment Claims are set to be out at the same time. If the data sets combined beat or disappoint forecasts, a notable move in all USD assets might occur.
The CPI has caused moves from 19.1 to 30.4 pips since June. Meanwhile, the Unemployment Claims have created moves from 5.9 to 12.2 base points.
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
At the 113.00 mark, the pair could not only finds psychological support of a round exchange rate, but also the weekly S1 simple pivot point. In the case that the USD/JPY passes below the 113.00 mark, next support could be found at the 112.58 level, where the weekly S2 simple pivot point was located at.On the other hand, if the 113.00 level provides enough support for a recovery, the rate could find resistance in the 50-hour simple moving average near 113.60. Above the SMA, the weekly simple pivot point at 113.72 might act as a resistance.
Hourly Chart
USD/JPY daily chart's review
The rate has passed the 113.50 level, which provided support since October 20.The 114.40/114.75 zone is the resistance zone of the late 2017 and 2018 high levels.
Daily chart
On Friday, on the Swiss Foreign Exchange, traders were short, as 73% of open position volume was in short positions.
On Monday, sentiment was 71% short.
Meanwhile, on Monday, trader set up pending orders in the 100-pip range around the rate were 53% to buy.
On Friday, the orders were 65% to sell.