Economic Calendar
This week, the US Consumer Price Index data release on Wednesday at 12:30 GMT is set to impact the financial markets.
On Thursday, watch out for the US Producer Price Index publication at 12:30 GMT. In addition, at the same time the US weekly Unemployment Claims numbers will be out.
Hourly Chart
A move below 134.60 would look for support in the 134.00 and 133.50 levels, before approaching the cluster of support levels near 132.00.
In the case of a surge above 135.35, the pair might encounter resistance at 136.00, 136.50 and the 137.00 level, prior to testing the weekly R1 simple pivot point at 137.20.
USD/JPY daily chart's review
On the daily candle chart, the pair has retraced to find support in the 50-day simple moving average near 133.50. In addition, note the 100-day SMA near 132.83. Meanwhile, the rate previously passed above the 200-day SMA, which failed to act as resistance.In the case of a resumption of the broader surge, the rate could be stopped by the 138.20/139.40 range.
Daily chart
Before the US CPI, on the Swiss Foreign Exchange, traders were 72% bearish, 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 55% to buy the USD against the JPY.