USD/JPY surges and aims at 111.00

Note: This section contains information in English only.
Source: Dukascopy Bank SA

The USD/JPY has confirmed that it is set to surge. Previously, long signals were only present on the daily chart.

Namely, the currency exchange rate broke through the resistance of the dominant descending channel pattern on the hourly chart.

Latest Fundamental Event

The Bureau of Labor Statistics released US PPI data lower-than-expected of negative 0.2% compared with forecasted 0.01%. Note, that the US Core PPI was released at the same time with the US PPI.

The Bureau of Labor Statistics said in a note, "Lower energy prices sent the producer price index (PPI) down 0.2% in December. Prices for services ticked down 0.1%, but are up 2.8% over the past year—the strongest pace this expansion. The sharp drop in oil prices over the fourth quarter has pulled down energy input costs for a second straight month."


Brexit does not affect USD/JPY

On Wednesday, fundamental events continued in full force. The UK Parliament was set to vote in a confidence vote, which would remove Theresa May from her post.

Meanwhile, macro release traders were looking forward to the weekly US Energy Information Administration Crude Oil Inventories at 15:30 GMT. The event causes larger than one percent moves in oil prices each week.

Besides a speech at the G20 Meetings by Bank of Japan's Governor Kuroda at 03:20 GMT, there is nothing on Thursday to watch.

On Friday, two data releases will be covered by Dukascopy Analytics.

At 09:30 GMT the UK Retail Sales will be published. Around 10-40 base point move can be expected during the event.

The biggest event of the will occur at 13:30. The Canadian CPI will be published. On the USD/CAD there are 30 pip moves even when it hits the forecast. When the data is different there have been 40-85 pip moves.
More content: Youtube Channel

USD/JPY short term daily review

During the previous trading session, the currency exchange rate broke the previously drawn descending medium pattern line at 108.64. On Wednesday, the rate was trading at the 108.56 mark.

In regards to the near-term future, it is expected that the rate will break the resistance of the corrected medium pattern line to surge towards the 109.00 level. Moreover, the simple moving averages will support the surge during the day.

On the other hand, the US Dollar could be resisted by the medium pattern line to pass most of the technical indicators to trade at the 108.200 level.

Hourly Chart

On the daily chart the rate has broken free from fluctuating horizontally at the 108.50 level.

In general, the pair is on its way to the 200-day SMA at the 111.00 level. The 200-day SMA was being strengthened by the monthly PP.

Daily chart


Traders reduce long position proportion

Since Monday, on the Swiss Foreign Exchange 61% of traders had open long positions of the USD/JPY.

That changed on Wednesday, as traders had become 55% long on USD/JPY.

Meanwhile, trader set up pending orders - stop losses, take profits and position open orders in the 100-pip range were once more neutral.

Short term traders have taken profit from the recent surge. Long term traders are still holding.

Actual Topics

Subscribe to "Fundamental Analysis" feed

Abonnieren
Um mehr über die Forex/CFD Handelsplattform von Dukascopy Bank SA, sowie über den SWFX und weitere handelsbezogene Informationen zu erfahren,
rufen Sie uns bitte an oder hinterlassen Sie eine Rückrufanfrage.
Für weitere Informationen über eine mögliche Zusammenarbeit,
bitte rufen Sie uns an oder fordern Sie einen Rückruf an.
Um mehr über die Dukascopy Bank Binären Optionen zu lernen /Forex Handelsplattform, SWFX und andere Handelsbezogenen Informationen,
bitte rufen Sie uns an oder fordern Sie einen Rückruf an.
Um mehr über die Forex/CFD Handelsplattform von Dukascopy Bank SA, sowie über den SWFX und weitere Handelsbezogenen Informationen zu erfahren,
rufen Sie uns bitte an oder hinterlassen Sie eine Rückrufanfrage.
Um mehr über Krypto Handel/CFD/ Forex Handelsplattform, SWFX und andere Handelsbezogenen Informationen zu erfahren,
bitte rufen Sie uns an oder fordern Sie einen Rückruf an.
Um mehr über Business Introducer und andere Handelsbezogenen Informationen zu erfahren,
bitte rufen Sie uns an oder fordern Sie einen Rückruf an.
Für weitere Informationen über eine mögliche Zusammenarbeit,
rufen Sie uns bitte an oder bitten Sie um einen Rückruf.