USD/JPY trades with high volatility ignoring the resistance levels on the hourly chart.
Despite that the rate was expected to decline in the future, as both technical and fundamental analysis perspectives were indicating that a decline will occur.
Census Bureau released the US Core Retail Sales data that came out better-than-expected of 1.2% compared with forecast 0.7%.
According to experts, the US retail sales showed the fastest growth since late 2017. In March, sales for automobiles, petrol, furniture and clothing surged. This advance might signal that consumers tend to spend more due to the healthy job market.
No more data this week
There will be no more significant data being published this week. Data releases will resume next week.First, the Canadian central bank will publish their interest rate on Wednesday at 14:00 GMT.
On Thursday, the US Durable Goods Orders data will be published at 12:30 GMT. This event can cause a move of up to 20 base points.
The data will end on Friday, as at 12:30 GMT the US Advance GDP will be published. This is the top US data set, which has the largest impact on the USD.
Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
USD/JPY short term daily review
The USD/JPY is trading with high volatility during the last 24 hours. Moreover, the rate has begun to largely ignore short term technical levels.In regards to the near term future, the pair should approach and test the support of the 111.85 level. It should be pushed into the support level by the technical resistance of the 55 and 100-hour simple moving averages.
However, the rate might ignore the SMAs and surge above them and reach the 112.00 level. The pair has done this before.
Hourly Chart
On the daily chart there is no significant additional information.It is only worth mentioning that the 200-day simple moving average was located at the 111.50 level. If the rate declines, this SMA will provide support.
Daily chart
On Friday, the Swiss Foreign Exchange sentiment was 69% short. Namely, 69% of all open position volume on the exchange was in short positions.
Meanwhile, trader set up pending orders were no longer bearish. Instead they had become almost neutral, as 52% of pending commands in the 100-pip range were set to buy.