Economic Calendar
This week, the top event for all markets will be the US Consumer Price Index and Core Consumer Price Index release on Wednesday at 12:30 GMT.
If the inflation data beats expectations, it is set to signal that the US Federal Reserve is pressured to hike interest rates and with it push the US Dollar's value up. On the other hand, a reveal that the inflation has slowed down might allow the central bank to go easier on the monetary tightening, which in turn would cause a decline of the USD.
On Thursday, at 12:30 GMT, the Producers Price Index and Core Producers Price Index will reveal inflation at the producer level. The PPI signals upcoming price increases or decreases at the consumer level.
Hourly Chart
A surge of the USD against the Japanese Yen would have to pass the 135.50 level, prior to approaching the resistance of the 136.00 and 136.50 levels.
On the other hand, a decline of the pair below the 50-hour simple moving average and the 134.50 mark might look for support in the 100-hour simple moving average and the 134.00 level. Further below, note the 200-hour simple moving average, the weekly simple pivot point at 133.62 and the 133.50 level.
USD/JPY daily chart's review
On the daily candle chart, the pair has been trading between the support of the 100-day simple moving average with the 131.25/132.00 zone and the resistance of the 50-day simple moving average near the 135.00 mark.Daily chart
Prior to the US inflation data release, on the Swiss Foreign Exchange, traders were 72% short 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 51% to buy the USD against the JPY.