- The Swiss traders are 60% short
- Trader pending orders in the 100-pip range are set to buy in 63% of all cases
- Federal Funds rate in focus on Wednesday
The USD/JPY has continued to surge and reached the 113.00 mark recently. In addition, the 55 and 100-hour simple moving averages have continued to provide support to the currency exchange rate. Meanwhile, the US Federal Funds rate announcement will dictate the rules today.
The Conference Board Inc. released the US CB Consumer Confidence data that came out better-than-expected of 138.4, compare to forecasted 132.2. The Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall US economic activity.
The Conference Board reported: "The Conference Board Consumer Confidence Index® increased in September, following a large improvement in August. The Index now stands at 138.4 (1985=100), up from 134.7 in August,"
US Federal Funds rate on Wednesday
The weekly US Crude Oil Inventories will be published at 14:30 GMT. The cover webinar for the release, will start as usual at 14:20 GMT.
Meanwhile, the most important data release will be the release of the US Federal Funds Rate. The Federal Reserve is expected to hike their interest rate to 2.25% from 2.00% at 18:00 GMT. The event will be also covered by Dukascopy Analytics live.
USD/JPY short term analysis
In regards to the near future, the rate will surge towards the weekly R1 at the 113.10 mark on Wednesday. Most likely, the rate will be traded in the 113.00 area with the support of the 55-hour and the 100-hour SMAs during the trading day.Hourly Chart
The daily chart has been reviewed on Wednesday morning. The rate is simultaneously surging in two various scale ascending patterns.
Although, note the narrow range of the junior pattern. Most likely it will be broken by the Federal Reserve's announcement.
Daily chart
Swiss Foreign Exchange bearish sentiment remains almost unchanged, as 61% of traders were short.
This indicates that traders might be expecting a decline after the surge, which has occurred during the previous trading sessions.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, were set to buy the pair in 52% of all cases. That is almost neutral and insignificant.
Spreads (avg, pip) / Trading volume / Volatility