Economic Calendar
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
The 129.00 level previously acted as resistance and could turn into support. In addition, the round exchange rate level might gain additional strength from the 50 and 100-hour simple moving averages. If the 129.00 level is passed, note that the 128.00 has been impacting the rate during this week. Further below, the 127.22/127.45 zone could once again act as support.
However, a recovery of the US Dollar against the Japanese Yen might be slowed down by the weekly simple pivot point at 129.39, the 130.00 mark and the 200-hour simple moving average near 130.50. However, these levels failed to impact the pair during its fundamental surge in the morning hours of Wednesday.
USD/JPY daily chart's review
On the daily candle chart, the pair is approaching the support zone of the May and June low levels at 126.35/126.95. Further below, the 125.00 mark might act as support.On the other hand, a recovery of the pair could find resistance not only in the 130.00 mark, but also the support and resistance zone at 130.50/131.40.
Daily chart
Prior to the PPI release, on the Swiss Foreign Exchange, traders were 64% 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 69% to sell the USD against the JPY.
On Tuesday, the open positions were 58% short and pending orders were 52% to buy.