Economic Calendar
During the upcoming week, on Tuesday, the US Flash Manufacturing and Services PMIs might impact the financial markets through an adjustment of USD value.
On Wednesday, at 18:00 GMT, the FOMC Meeting Minutes publication could provide more insight into the Federal Reserve's policy.
On Thursday, the US Preliminary GDP and Unemployment Claims releases at 12:30 GMT are highly likely going to impact the USD.
On Friday, at 12:30 GMT, the Core PCE Price Index is bound to impact financial markets through the US Dollar.
Hourly Chart
An extension of the decline might look for support in the 135.35/135.50 range. Further below, note the 135.00 mark and the technical levels which surround it.
On the other hand, the pair could recover. In the case of a recovery, the rate is expected to face resistance in the 136.00 level and the weekly R1 simple pivot point at 136.34, before approaching 136.50 and the 137.00 mark.
USD/JPY daily chart's review
On the daily candle chart, the pair has retraced to find support in the 50-day simple moving average near 133.50. In addition, note the 100-day SMA near 133.00. Meanwhile, the rate previously passed above the 200-day SMA, which failed to act as resistance.In the case of a resumption of the broader surge, the rate could be stopped by the 138.20/139.40 range.
Daily chart
On Friday, on the Swiss Foreign Exchange, traders were 74% bearish, 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 61% to buy the USD against the JPY.
On Monday, situation remained almost unchanged. 73% of positions were short and orders were 54% to buy.
By mid-Tuesday, positions were 72% short and orders were 55% to buy.