On Monday, the USD/JPY continued the decline, which it began on Friday. By the middle of the day's London trading hours, the rate had reached the support of a pivot point at 108.97.
The rate had a couple possible future scenarios, which are described below.
On Wednesday, at 13:30 GMT the US Consumer Price Index and Core Consumer Price Index are set to be published. The event has caused moves on the charts from 12.1 to 28.4 pips.
The US PPI and Core PPI data sets are scheduled to be released on Thursday at 13:30 GMT. This is a minor data release, but still worth taking into account due to the possibility of it creating a move above ten pips.
Since April 2019, the event has caused moves from 4.7 to 12.4 pips.
On Friday, the US Retail Sales data sets will be out at 13:30 GMT. The release has caused moves from 16.2 to 25.4 pips.
Meanwhile, the week's reaction tables have been published. Take a look at the 11.11-15.11 Event Historical Reactions publication.
Read More: 11.11-15.11 Event Historical Reactions
USD/JPY short-term daily review
On Friday, the USD/JPY currency pair reversed south from the resistance level formed by the monthly R1 at 109.39. During today's morning, the pair was testing the support level—the weekly PP at 108.97.If the given support level holds, it is likely that the exchange rate could trade upwards and re-test the given resistance level in the nearest future. Note that the rate has to surpass the 55– and 100-hour SMAs, currently located circa 109.10.
The given moving averages could push the currency pair down to the 200-hour SMA, currently located at 108.76. If the given support level holds, the US Dollar could consolidate against the Japanese Yen in the short term.
Hourly Chart
On the daily candle chart, the rate has passed the resistance of the 200-day simple moving average. The SMA on Wednesday began to provide technical support. Previously, the SMA kept the rate down throughout October.
Daily chart
Read More: Technical Analysis
Short sentiment remains intact
On Monday, on the Swiss Foreign Exchange USD/JPY open position volume was bearish. 55% of open volume was short and 45% was long.
Meanwhile, trader set up orders were bullish. Namely, in the 100-pip range 54% of pending orders were to buy and 46% were to sell.