Economic Calendar
This week, various events will impact the markets. In general, fundamentals are set to impact the currencies.
On Tuesday, at 15:00 GMT, the Consumer Board Consumer Confidence index is set to reveal how the consumers are looking into the future.
On Wednesday, the ADP Non-Farm Employment Change, JOLTS Job Openings and ISM Manufacturing PMIs might cause moves in the USD. The releases will occur at 13:15 GMT and 15:00 GMT.
Afterwards, at 19:00 GMT, the US Federal Reserve is set to hike its Federal Funds Rate. The central bank is expected by the markets to increase its interest rate from 4.50% up to 4.75%. The announcement will be followed by a press conference of the Chairman of the Federal Reserve Jerome Powell at 19:30 GMT.
On Friday, the US monthly employment data will be published at 13:30 GMT. The release will consist of Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
Hourly Chart
The move above 130.00 faces resistance in the 130.50 and 131.00 levels. Both of these levels have recently acted as resistance. In addition, take into account the weekly R1 simple pivot point at 130.94.
Meanwhile, a decline of the currency pair could look for support in 129.00, 128.50 and 128.00, before the support zone near 127.25/127.50 would be reached.
USD/JPY daily chart's review
On the daily candle chart, the pair finds resistance in the zone at 130.50/131.40.Meanwhile, it appears that the pair has broken the channel down pattern, which has guided it down since late October.
Daily chart
On Monday, on the Swiss Foreign Exchange, traders were 51% bullish, as that amount of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 53% to buy the USD against the JPY.
On Tuesday, the sentiment was 50% short and long. Pending orders were 58% to buy.