On the USD/JPY charts there was an initial fake breaking of the channel up pattern, as the pair shortly traded below the trend line, the 50-hour simple moving average and the weekly R1 simple pivot point. Afterwards, a surge followed, which reached the 144.90145.10 range by GMT time zone midnight. On Friday, the rate appeared to be consolidating by looking for support. The support might be found at 144.50.
Economic Calendar
On August 11, the markets will look at the US Producer Price Index at 12:30 GMT to analyse potential consumer price increases in the future.
Producers usually increase their prices in accordance with their own expense increases. Namely, they quite often investigate the consumer tolerance of price hikes by continuous increases until they spot a drop in volume. In the current environment some firms have reached this point.
Hourly Chart
A decline below 144.50 could result in the pair looking for support in the lower trend line of the ascending channel and the approaching 50-hour simple moving average. If these technical levels fail, the 144.00 mark is highly likely set to act as support. Even further below, take into account the 100-hour simple moving average, the weekly R1 simple pivot point at 143.49 and the 143.50 level.
If the surge resumes, it is set to face the 144.90/145.10 range. A breaking of the resistance might immediately be slowed down by the weekly R2 simple pivot point at 145.29 and the 145.50 level.
USD/JPY daily chart's review
On the daily candle chart, the rate has confirmed that the 50-day simple moving average can still act as support, as it has provided support on Monday and caused the recent minor recovery.On August 10, the rate reached the 145.00/146.00 range, which marks a zone that acted as resistance and support in the second part of 2022. At the end of June and early July of 2023 this range caused the July decline.
Daily chart
On Friday, traders were bearish on USD/JPY, as 66% of open positions on the Swiss Foreign Exchange were short.
In the meantime, trader pending orders in the 100-point range around the current exchange rate are 58% to buy.