The SMA was expected to push the pair into another test of the resistance at 107.20. If this resistance level gets passed, the rate could surge up to 107.50.
Economic Calendar
This week there are couple of events that could move the USD/JPY pair.
On Wednesday, September 11, the US Producer Price Index data will be released at 12:30 GMT. Since February, the USD/JPY rate has been moved from 3.9 to 31.9 pips by the event.
On Thursday, September 12, the US Consumer Price Index will be published at 12:30 GMT. Last time, this data release caused a 23-pip move.
The week will end with the US Retail Sales data release at 12:30 GMT on Friday, September 13.
USD/JPY short-term daily review
On Friday, the USD/JPY currency pair traded sideways between the monthly PP and the Fibonacci 23.60% retracement, located at 106.70 and 107.00 respectively.Note that the exchange rate is supported by the 55-hour moving average, currently located at 106.89. Thus, the rate could breach the given area north and target the weekly R1 at the 107.52 mark.
On the other hand, the US Dollar could continue to consolidate against the Japanese Yen within the given area in the short run. Also, it is unlikely that bears could prevail, and the pair could drop lower than the 106.36 mark due to the support of the 200-hour SMA.
Hourly Chart
On the daily candle chart, the pair is testing the resistance of the 55-day simple moving average. It is the technical reason for the rate not being able to pass the 107.20 level.
Daily chart
Read More: Technical Analysis
Traders remain long on USD/JPY
On Monday, 61% of USD/JPY open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were neutral. Namely, in the 100-pip range 51% of pending orders were set to sell and 49% were to buy.