Due to the event the USD/JPY dipped to 129.50, before recovering back up to almost 131.00.
Economic Calendar
Next week, watch out for the publication of the US Producer Price Index data on Wednesday at 13:30 GMT. The data will reveal inflation at the production level.
In addition, the US Retail Sales data is set to be published together with the PPI. The retail sales are set to signal whether or not the US consumers are continuing to purchase goods, despite the ongoing inflation.
Hourly Chart
In general, a decline of the pair could once again look for support in the weekly S1 simple pivot point at 129.43 and the 129.50 level. Further below, note that round price levels might slow down a decline.
However, a recovery of the US Dollar is expected to find resistance in the 131.00 level and the 131.30/131.37 range. Above these levels note the combination of the 50, 100 and 200-hour simple moving averages, the 132.00 mark and the weekly simple pivot point at 132.10.
USD/JPY daily chart's review
On the daily candle chart, the pair has reached back below the resistance and support zone of 2022. A move below the zone might approach the May and June low levels at 126.35/126.95.Meanwhile, note that the 50-day simple moving average near the 136.00, which could eventually catch up with the rate and act as resistance.
Daily chart
After the US CPI release, on the Swiss Foreign Exchange, traders were 68% 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 64% to sell the USD against the JPY.