On Monday, the USD/JPY currency pair was testing the resistance formed by the weekly R1 and the monthly R2 at 100.25.
If the given resistance holds, it is likely that the pair could consolidate.
Today, the US Consumer Price Indices might cause a minor move on the US Dollar pairs.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 13.01-17.01 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair raised to the resistance level formed by the monthly R2 and the weekly R1 at 100.25. During Tuesday morning, the pair was testing the given level.If the given resistance holds, it is likely that a reversal south could occur in the nearest future. Note that the exchange rate could gain support of the 55-hour SMA at 109.76.
If the given support holds, it is likely that the US Dollar could consolidate against the Japanese Yen in the short run. Otherwise, the currency pair could decline to the monthly R1 at 109.47.
Hourly Chart
As apparent on the chart, the pair surpassed the resistance of the 50.00 Fibo and the trend line of the 2018 and 2019 high levels.
Given that the pair is supported by the 55-day SMA, it is likely that some upside potential could prevail in the market.
Daily chart
Read More: Technical Analysis
Short sentiment continues to increase
On Tuesday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 75% of pending orders were to sell and 25% were to buy.