In the meantime, it has been spotted that the currency pair has been surging in a channel up pattern since October 5. The support line of the pattern has been tested a total of three times. However, a potential resistance line had caused a decline only once.
Economic Calendar
This week, the markets are looking forward for the monthly United States inflation and retail sales data. In addition, on Wednesday, the FOMC Meeting Minutes might impact the markets.
On Wednesday, at 12:30 GMT, the US Producers Price Index change will reveal inflation at the production level.
Later on, at 18:00 GMT, the Federal Reserve Federal Open Market Committee Meeting Minutes are going to provide more insight into the decisions of the US monetary policy makers.
On Thursday, the top event of the week will take place. The United States Consumer Price Index is scheduled to be published at 12:30 GMT.
On Friday, at 12:30 GMT, the US Retail Sales data could also impact the financial markets.
Hourly Chart
An extension of the ongoing surge is expected to encounter some resistance in the 146.50 level, the weekly R2 simple pivot point at 146.64 and the upper trend line of the channel up pattern near 146.75. Higher above, take into account the 147.00 level.
Meanwhile, a decline of the US Dollar against the Japanese Yen might look for support in the 146.00 level, the weekly R1 at 145.93, the 145.85/145.90 zone, the lower trend line of the channel up pattern and the 50-hour simple moving average. If these levels fail, the 145.50 and the 100-hour SMA might act as support.
USD/JPY daily chart's review
On the daily candle chart, the rate has broken the resistance zone, which had kept it down since the start of September. In the near term future, the surge could encounter resistance in the 1998. High level at 147.60.Daily chart
On Wednesday, on the Swiss Foreign Exchange, traders were 75% short 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.
On Tuesday, the positions were already 75% short and pending orders were 56% to sell.