On Friday, the USD/JPY managed to reach above the resistance of the 55, 100 and 200-hour simple moving averages. In the meantime, a channel up pattern was spotted on Monday. The pattern could continue to guide the rate up in the medium term future.
On Monday morning, the rate was located at the support of the 200-hour simple moving average near 109.60.
Economic Calendar
On Tuesday, at 12:30 GMT, the US Retail Sales and US Producers Price Indices are expected to be released. The Retail Sales have caused moves from 9.3 to 17.7 pips since January. The PPI has moved the USD/JPY from 9.3 to 21.7 pips during this year.
On the same day, the top event of the week would occur. At 18:00 GMT, the US Federal Funds Rate and Fed Statement could cause a move from 7.8 to 34.5, as it had done since November 2020.
On Thursday, the US Unemployment Claims could cause a move from 7.4 to 21.7 pips.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
In the near term future, the support of the 200-hour SMA could be strengthened by the 55 and 100-hour SMAs. This event could be followed by a surge. A potential surge would have no resistance as high as the weekly R1 simple pivot point at 109.97. In addition, the 110.00 mark could provide resistance.On the other hand, if the SMAs fail to push the rate up, support might be provided by the weekly simple pivot point at 109.58. In the case of the rate passing below the pivot point, the lower trend line of the channel up pattern could provide support.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the pair is surging in the borders of a channel up pattern, which has guided it since the middle of April. In the meantime, the rate has additional support from the 55-day simple moving average at 109.25.In the case of the channel holding and the rate surging in its borders, a potential target would be the 2020 high zone near the 112.00 level.
Daily chart
On Monday, traders on the Swiss Foreign Exchange were 71% short on USD/JPY, 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 56% to sell.