- The Swiss traders are 62% short
- Trader pending orders in the 100-pip range are set to buy 59% of all cases
- US data will come on Friday
USD/JPY continues its surge, as 114.60 mark has been reached. The climbing upwards of the USD/JPY from one pivot point to another is set to continue, as the simple moving averages continue to push it higher.
The Institute for Supply Management released the ISM Non-Manufacturing PMI data that came out better-than-expected of 61.6 , compare to forecasted 58.0.
Anthony Nieves, the ISM Chair says: "The non-manufacturing sector has had two consecutive months of strong growth since the 'cooling off' in July. Overall, respondents remain positive about business conditions and the current and future economy," . However, "concerns remain about capacity, logistics and the uncertainty with global trade."
Last and only data will come on Friday
All traders should note that on Friday at 12:30 GMT the US employment data sets like the Employment Change and Average Hourly Earnings will be published. By some financial media this event is seen as the most important of them all.
Join the event's cover webinar at 12:20 GMT to participate and see the data release live.
USD/JPY short term analysis
During Thursday's trading session, most likely the rate will be traded sideways at the medium ascending pattern at the 114.40 level. The SMAs will try to catch the rate to give additional support for the currency pair.Hourly Chart
New patterns were drawn both on the daily and hourly charts. Zoom out to take a better look on the medium scale ascending pattern.
Daily chart
Traders remain bearish, as 62% of trader open USD/JPY positions were short since Wednesday. Most likely the traders, who opened short positions were expecting a decline after the recent gains of the USD.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, were set to buy in 57% of all cases. The domination of buy orders was normal, as all of the short positions are followed by take profits and close orders that would buy the USD/JPY.
Note that, if the buy orders get triggered, as the rate goes higher, the retail sector might provide additional strength for the USD/JPY to go even higher.