Economic Calendar
On Thursday, watch out for the US Producer Price Index publication at 12:30 GMT. In addition, at the same time the US weekly Unemployment Claims numbers will be out.
Hourly Chart
The ongoing decline might look for support in the 134.00 and 133.50 levels, before approaching the cluster of support levels near 132.00.
Meanwhile, a potential recovery of the US Dollar could encounter resistance in the 134.60/134.70 range and the 100-hour simple moving average near it. Above the range, note the 50 and 200-hour SMAs, the weekly simple pivot point and the 135.10/135.35 zone.
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 132.83. 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
Before the US CPI, on the Swiss Foreign Exchange, traders were 72% 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 55% to buy the USD against the JPY.
After the CPI, positions were 74% short and orders were 53% to buy.