Dukascopy Bank SA open position statistics show that traders were expecting the move. On Tuesday, 71% positions were long and 91% of orders were to buy. Some have already taken profit, some expect more gains, as 69% of positions are still long.
Economic Calendar
On Friday, take into account that the release of the European, United Kingdom and United States Markit Manufacturing and Services Purchasing Managers Indices are set to be published and impact respectively the Euro, Pound and the US Dollar. The publications are scheduled to be done throughout the day.
USD/JPY hourly chart analysis
An extended move above 149.00 could be slowed down by the 149.50 level, before the 150.00 mark is reached. Higher above, note the descending 200-hour simple moving averages and the weekly simple pivot point at 150.20.On the other hand, a decline of the US Dollar against the Japanese Yen is expected to look for support in the combination of the weekly S1 simple pivot point at 148.50 and the 148.50 mark on its own. In addition, take into account the 50-hour simple moving average near 148.15. Meanwhile, the 148.00 level did not impact the rate during the recent decline and recovery. Due to this reason it could be ignored. Further below, the weekly S2 at 147.49 and the 147.50 level might slow down the pair, prior to the 147.15/147.35 range being reached.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has passed below the 50-day simple moving average that had pushed the rate up since early August.Meanwhile, take into account the additional combined support on this chart in the form of the 100-day simple moving average and the 1998 high level at 147.60. On Tuesday, the rate pierced these support levels, as they held on.
Daily chart
On Monday, traders have been bullish on USD/JPY, as 69% of open positions on the Swiss Foreign Exchange were long.
Meanwhile, trader pending orders in the 100-point range around the current exchange rate were 50-86% to buy.
By mid-Tuesday, positions were already 71% long and orders were 91% to buy. It appears that traders expect a surge.
On Wednesday, 69% were long, as some had already taken profits. At the same time, orders were just 54% to buy.