- The Swiss traders are 61% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 53% to buy the pair
- The pair has reached the 113.40 mark
The surge of the USD/JPY reached the 113.40 level before retracing dowanrds back to the levels near the 113.00 mark. In general, it is expected that the rate will resume its surge in the near future.
Latest Fundamental Event
The Federal Reserve releases US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
The minutes said, "Almost all participants expressed the view that another increase in the target range for the federal funds rate was likely to be warranted fairly soon".
Busy week for fundamentals
On Tuesday the US Producers Price Index will be released at 13:30 GMT. This data release is set to slightly impact all the pairs that involve the US Dollar. For example, the EUR/USD could bounce around ten pips on the release.On Wednesday, the US Consumer Price Index change will be published at 13:30 GMT. The event is expected to cause around 20 pip reaction on the EUR/USD.
Note that on Wednesday the biggest move that can be caught will occur on the oil price benchmarks. Namely, at 15:30 GMT the US Crude Oil Inventories data release will cause a sudden move of more than one percent.
On Thursday, the attention will be taken by central bank rate announcements. Namely, at 08:30 GMT the Swiss National Bank will publish their rate and at 12:45 the ECB will publish their interest rate.
The last day of the week will have two notable data releases. At 09:00 GMT the European Manufacturing and Services PMI's created by Markit will be published.
Afterwards, the US Retail Sales data sets will be out at 13:30 GMT. The event might cause a 20 pip bounce.
All of the above mentioned data releases will be covered by Dukascopy Analytics. The events can be watched either on the bank's webinar platform or on our YouTube channel.
USD/JPY short term daily review
During Monday's trading session, the US Dollar appreciated by 115 pips or 1.02% to end the trading session at the 113.08 mark. During Tuesday's morning hours, the rate was supported by the 200-hour SMA to trade at the 113.12 mark.In regards to the near-term future, the US Dollar will trade sideways between the monthly PP at 113.34 and the weekly PP at 112.93 mark. In addition, the 100-hour and the 55-hour SMAs will support the rate near the weekly PP at 112.93 mark.
On the other side, the rate could appreciate against the Japanese Yen during today's US PPI data release at 13:30 GMT to push the rate to trade near the weekly R1 at the 113.62 level.
Hourly Chart
On the daily chart it can be observed that the currency exchange rate's decline was stopped by the support of the 100-day simple moving average at the 112.20 level.
Meanwhile, note that the 55-day simple moving average at 113.00 has been influencing the currency exchange rate during the last couple of trading sessions.
Daily chart
The USD/JPY sentiment remains unchanged. Since last week 61% of traders were short. The sentiment has been short for more than a week.
Meanwhile, trader set up pending orders, stop losses, take profits and position open orders were neutral on Monday. By the middle of Tuesday's trading 55% of trader set up orders in the 100-pip range were set to buy the USD/JPY.