The sideways trading could be explained with the markets expecting the upcoming US Consumer Price Index data on Wednesday at 13:30 GMT. The data is set to reveal the effects of the first Federal Reserve rate hike.
Economic Calendar
During the week, most attention will be put on the US Consumer Price Index and Producer Price Index data. The data sets are expected to reveal the inflation in the United States in the aftermath of the first Federal Reserve Rate hike done in March. Consumer Price Index and Core Consumer Price Index number will be published on Wednesday at 12:30 GMT.
On Thursday, at 12:30 GMT, US Producer Price Index and Core Producer Price Index data will reveal inflation levels at the production level. In addition, take into account that the weekly US Unemployment Claims are scheduled to be released at the same time. Note that on their own, the claims have not been capable of increasing volatility. The moves on USD on April 28 were caused by the release of the negative US GDP, not the Unemployment Claims.
To see historical move tables click on the link below.
Hourly Chart
If the rate declines below the 129.78/129.86 zone, the 129.50 mark might act as minor support level, before the pair reaches the weekly S1 simple pivot point at 129.15 and the 129.00 level.
However, a move above the 130.50/130.58 zone could reach up to the 2022 high level zone at 131.00/131.33 and the weekly R1 simple pivot point.
USD/JPY daily chart's review
On the daily candle chart, the pair continues to be surging in a channel up pattern, which captures the rate's moves up since the middle of March. Note that the trend lines of the pattern could act as support and resistance.Daily chart
On Monday, on the Swiss Foreign Exchange, traders were short, as 60% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 53% to sell the USD against the JPY.
On Tuesday, open positions were 61% short and pending orders were 52% to buy.