During the early hours of Monday's trading, the pair failed at passing clearly above the high level and retraced downwards. At mid-day the currency rate was looking for support in the combination of the 50-hour simple moving average and the supporting trend line, which has guided the pair up for a couple of weeks.
Economic Calendar
On Tuesday, the financial markets are expected to react to the US Producer Price Index and Core Producers Price Index release at 12:30 GMT.
On Wednesday, the US Retail Sales and Core Retail Sales is bound to impact the USD value at 12:30 GMT.
The top event of the month is scheduled for Wednesday's 18:00 GMT. The US Federal Reserve will publish its Economic Projections and Statement. The central bank is expected to hike interest rates. The question remains among market participants whether a 0.50% or 0.75% hike occurs.
Note that after the official announcement a press conference is scheduled for 18:30 GMT.
Hourly Chart
If the USD/JPY resumes its surge and reaches above the 135.00 level, resistance could be found in the 135.50 level and the weekly R1 simple pivot point at 135.82. Higher above, note the 136.00 and 136.50 levels.
On the other hand, a decline of the US Dollar against the Japanese Yen is set to look for support in the 134.50 level, the 50-hour simple moving average and the supporting trend line.
USD/JPY daily chart's review
On the daily candle chart, the rate has shortly reached above the 2002 level at 135.00. However, it appears that a zone around this level is acting as resistance to the surge.Daily chart
On Monday, on the Swiss Foreign Exchange, traders were 75% short as that amount of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 57% to buy the USD against the JPY.