Economic Calendar
On Friday, the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
Hourly Chart
A continuation of the appreciation of the US Dollar against he Japanese Yen is set to test the following levels. The 138.00 mark, the weekly R1 simple pivot point at 138.24, the 138.50 and 139.00 levels.
However, a potential decline would have to first pass below the support of the ascending trend line and the 200-hour simple moving average near 137.20. In addition, note the approaching 50-hour simple moving average near 136.75. Further below, the rate could look for support in the 136.50 mark, before the combination of the 136.00 level, the weekly simple pivot point at 135.93 and the 100-hour simple moving average would be reached.
USD/JPY daily chart's review
On the daily candle chart, the pair has retraced from the 134.00 level up to the resistance of the 200-day simple moving average at 137.40. The SMA is acting as resistance.Daily chart
On Wednesday, on the Swiss Foreign Exchange, traders were 60% 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 58% to buy the USD against the JPY.
On Tuesday, the sentiment was 58% short and orders were 53% to buy.