On Monday, the USD/JPY recovery reached above the 110.00 mark. However, the rate encountered resistance at 110.29 where the weekly simple pivot point and the 100-hour simple moving average were located at.
Economic Calendar
On Tuesday, the US Consumer Price Index at 12:30 GMT is expected to impact all USD traded assets and currency pairs.
On Wednesday, the US Producers Price Index at 12:30 GMT will impact the USD.
On Thursday, the weekly US Unemployment Claims could cause minor USD moves.
The week will end with the US Retail Sales data at 12:30 GMT.
In addition, note that the Bank of Japan is set to make a Policy Statement on Friday. However, the bank does not set a time for the event.
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 case that the rate surges above the technical resistance levels near 110.30, the pair could reach for the 200-hour simple moving average and the July 7 high level.On the other hand, a potential decline would look for support in the 110.00 level and the 55-hour simple moving average. In the case that the rate passes below the 110.00 mark, it could reach for the 109.55 level.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has broken the channel up pattern, which guided it since April. Moreover, the pair passed the support of a 61.80% Fibonacci retracement level at 110.05.In the meantime, note that the 55 and 100-day simple moving averages could provide the rate with support at 109.73 and 109.23.
Daily chart
On Monday, traders on the Swiss Foreign Exchange were 70% short on the USD/JPY currency pair.
On Friday, the open position volume was 69% short.
On Monday, SWFX traders set up pending orders in the 100-pip range around the rate were 61% to buy.