The USD/JPY exchange rate tested the support level formed by the weekly S1 at the 111.78 mark.
It is expected, that the rate trades sideways between the given support and the resistance level formed by a combination of the 55-, 100- and 200-hour SMAs located circa 111.90.
Census Bureau released the US Core Retail Sales data that came out better-than-expected of 1.2% compared with forecast 0.7%.
According to experts, the US retail sales showed the fastest growth since late 2017. In March, sales for automobiles, petrol, furniture and clothing surged. This advance might signal that consumers tend to spend more due to the healthy job market.
Last week of the month
During this week, there will be a couple of macroeconomic events to watch, avoid or trade.
First, the Canadian central bank will publish their interest rate on Wednesday at 14:00 GMT.
On Thursday, the US Durable Goods Orders data will be published at 12:30 GMT. This event can cause a move of up to 20 base points.
The data will end on Friday, as at 12:30 GMT the US Advance GDP will be published. This is the top US data set, which has the largest impact on the USD.
Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tried to breach the short-term descending channel north.Given, that the pair is pressured by the 55-, 100- and 200-hour SMAs, located circa 111.90, it is likely that some downside potential prevails in the market. However, the pair has to surpass the weekly S1 at 111.78.
If the given support and resistance hold, it is expected, that the exchange rate trades sideways in the nearest future. Also, it is unlikely, that the rate could breach the given channel north in the short term due to the resistance level –the monthly PP at 111.97.
Hourly Chart
On the daily chart there is no significant additional information.
It is only worth mentioning that the 200-day simple moving average was located at the 111.50 level. If the rate declines, this SMA will provide support.
Daily chart
On Wednesday, 65% of all open position volume on the exchange was in short positions on the Swiss Foreign Exchange.
Meanwhile, trader set up pending orders were almost neutral, as 49% of pending commands in the 100-pip range were set to sell.