After making three attempts to pass the 109.00 level, on Tuesday, the USD/JPY remained below this level.
Due to the strength of the resistance of the 109.00 level and the additional strength of the 100 and 200-hour simple moving averages, the pair was expected to decline.
Economic Calendar
The rate could move due to the US CPI on Wednesday at 12:30 GMT. The pair has moved from 8.1 to 27.1 pips on the release.
On Friday, the US Retail Sales and Core Retail Sales at 12:30 GMT are bound to move the pair, as the release had moved the pair from 9.3 to 16.7 since December.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
A potential decline was most likely going to reach the 50.00% Fibonacci retracement level at 108.35, which stopped the pair's Friday's drop. The drop was caused by worse than expected US labour data.On the other hand, if the rate manages to pass the resistance of the 100 and 200-hour SMAs and the 109.00 level, the USD/JPY could reach for the weekly R1 simple pivot point at 109.45.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, it can be observed that the pair has reached the support of the 55-day simple moving average, which previously reversed the April decline.Daily chart
On Tuesday, traders on the Swiss Foreign Exchange were 60% short on USD/JPY.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 62% to buy the pair.