- The Swiss traders are 68% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 52% to sell
- No more data releases this week
On Friday, Dukascopy analysts spotted a descending pattern on the hourly chart of the USD/JPY currency exchange rate. The rate needs to pass a technical support level at 113.16 to reach a new low level below the 113.00 mark.
Latest Fundamental Event
The Census Bureau released US Retail Sales data that came out better than expected of 0.8%, compare to forecasted 0.6%.
Advance estimates for US retail sales increased 0.8% over last month in October, higher than consensus expectations of a 0.5% pace of increase. Retail sales were downwardly revised to see a pace of decrease of 0.1% in September, the Commerce Department said in a statement Thursday.
No more data, wait for Monday's calendar analysis
No more notable data will be published this week. Macroeconomic data traders will wait for Monday.For more in-depth analysis of this week's fundamental economic events watch the weekly Monday's Poking the Economic Calendar webinar, which is live each Monday at 12:00 both on Dukascopy telefision and YouTube.
USD/JPY short term analysis
In regards to the near-term future, most likely, the US Dollar will keep depreciating towards the weekly S1 at 113.16 to pass through its support to trade at the 113.00 level during the trading session on Friday.On the other side, the US Dollar could be supported by the weekly S1 at 113.16 to push the currency exchange rate to recover itself at the 113.20 level.
Hourly Chart
What can be deducted from the daily chart is that the currency exchange rate is very above the daily simple moving averages. It is still a strong signal that a decline is set to occur until the SMAs catch up to the currency exchange rate.
Daily chart
By the middle of Thursday's trading session the sentiment had jumped up to being 69% short. On Friday, the sentiment was 68% short.
In the meantime, the trader pending orders are almost neutral. Namely, 52% of trader set up orders are set to sell.
The decline continues and the retail traders are taking advantage of it.