The USD/JPY currency pair has been trying to surpass the resistance level formed by the 55- and 100-hour SMAs, as well the Fibonacci 38.20% retracement since yesterday.
If the given resistance holds, some downside potential could prevail in the market in the nearest future.
Bureau of Labor Statistics released the US Core CPI data, which came out worse-than-expected of 0.1% compared with forecast 0.2%.
According to the official release: "The food index rose 0.3 percent in May after declining in April, with the food index accounting for nearly half of the May seasonally adjusted all items monthly increase. The energy index fell 0.6 percent in May, with the gasoline index falling 0.5 percent and the indexes for electricity and natural gas also declining in May. The index for all items less food and energy increased 0.1 percent for the fourth consecutive month. The indexes for shelter, medical care, airline fares, education, household furnishings and operations, and new vehicles all rose in May. The indexes for used cars and trucks, recreation, and motor vehicle insurance were among those that declined over the month."
US Retail Sales data release will be on focus
The week will end with the US Retail Sales data release on Friday at 12:30 GMT. Last time, the rate made a twelve-pip move.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tried to surpass the resistance level formed by the 55– and 100-hour SMAs, as well the Fibonacci 38.20% retracement at 108.44.Note, that the pair is supported by the 200-hour SMA, currently located at 108.33, thus, some upside potential could prevail in the market. A possible upside target is the weekly R1 at 108.61.
If the given resistance holds, it is expected, that the exchange rate could re-test the lower boundary of the short-term ascending channel. It is unlikely, that a breakout south could occur, as the rate is supported by the weekly PP at 108.22.
Hourly Chart
On the daily candle chart, a large descending channel pattern can be observed.
Also, as apparent on the chart, the rate is trading sideways around the Fibonacci 38.20% retracement at 108.43. No significant changes are expected in the nearest future. .
Daily chart
On Thursday, 71% of all positions on the Swiss Exchange Market were long.
Meanwhile, trader set up pending orders remained almost neutral, as 52% of pending commands in the 100-pip range were set to buy.