Note that the surge occurred, as the markets were expecting the US Federal Reserve Rate hike on Wednesday. In addition, a run to safety was occurring in the financial markets.
Economic Calendar
On Tuesday, at 12:30 GMT, the US Producer Price Index data will be out. Expect minor moves on USD charts.
On Wednesday, at 12:30 GMT, the US Retail Sales and Core Retail Sales data might cause USD moves.
The top event of the quarter is scheduled for 18:00 GMT. At that time, the US Federal Reserve will releases its FOMC Statement and FOMC Economic Projections and the Federal Funds Rate.
Click on the link below to find out more about data releases of this and other currency exchange rates.
USD/JPY short-term review
If the USD/JPY continues to move higher, the rate could find technical resistance in the weekly R1 and R2 simple pivot points at 118.20 and 119.04. However, this is a fundamental move and it is more likely that stops and pauses might occur near 118.50 and 119.00On the other hand, a potential decline might look for support at 117.50 and 117.00. In addition, note the 50-hour simple moving average near 117.00.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has broken not only the 2022 high level zone, but also the channel up pattern, which guided the pair up since late 2021.Note the zone at 118.50/118.70. This zone marks the pair's late 2016 and early 2017 high levels.
Daily chart
On Monday, on the Swiss Foreign Exchange, traders were short, as 71% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 54% to sell the USD against the JPY.