- The Swiss market sentiment is 52% bearish
- Trader pending orders in the 100-pip range are set to buy in 59% of all cases
- Notable macroeconomic data will be published only on Wednesday
The USD/JPY pierced the dominant resistance pattern once more. Watch out for a possible breaking of the pattern.
Last week was full of US data. For example see the video with the cover of the release of various US employment data sets on Friday.
Fundamental bounces are not expected until Wednesday
US data is about to be released on Wednesday. The US Producers Price Index will be out on Wednesday at 12:30 GMT. The data release will be a part of the weekly macro release review webinar, which will begin on the bank's live webinar platform at 12:00 GMT.
In addition during that day the US Crude Oil Inventories will also cause a reaction in the financial markets. Namely, oil prices will increase volatility at 14:30 GMT.
USD/JPY short term analysis
In regards to the near term future, it can be expected that the trend line will hold its ground once more and the rate will decline back down to the strong support cluster near the 111.20 mark, where various SMAs and a Fibonacci retracement level are located at.On the other hand, if the trend line is broken, expect the pair to easily reach the 111.70 level, where the weekly R1 is located.
Hourly Chart
The pattern on the daily chart looks at risk. Although, a piercing of its trend lines for a short term had occurred previously.
Meanwhile, note the support of the 55 and 100-day simple moving averages, which have shown themselves in the past as strong enough support levels to set the rate's medium term direction.
Daily chart
The Swiss Foreign exchange retail traders keep bouncing around the 50/50 proportion in their open positions. Namely, on Tuesday, 52% of trader open positions were short.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, were 50/50 balanced on Tuesday.
The brokerages with more long term clients remained also almost neutral on Tuesday. Saxo Bank traders are 54% short. Meanwhile, OANDA traders have 52% of open positions at the brokerage long. Previously 52% were short.
Spreads (avg, pip) / Trading volume / Volatility