- The Swiss traders are 62% short
- Trader pending orders in the 100-pip range are set to buy in 58% of all cases
- Federal Funds rate in focus on Wednesday
The surge of the USD/JPY occurs, as previously forecast. Namely, the rate found support in the lower trend line of an ascending pattern and the 100-hour SMA. The pair will surge up to the 113.10 mark, where the next notable resistance is located at.
There were no data releases affecting the USD/JPY in the couple of last weeks. However, this week the situation is set to change. See the Economic Calendar analysis to find out more.
US Federal Funds rate on Wednesday
Today, CB Consumer Confidence data release will most likely cause a small reaction in the financial markets. The data release is set to occur at 14:00 GMT, and it will be covered by the Dukascopy Analytics team.
Although, the most important day of the week for fundamentals will be Wednesday. The weekly US Crude Oil Inventories will be published at 14:30 GMT. The cover webinar for the release, will start as usual at 14:20 GMT.
Meanwhile, the most important data release will be the release of the US Federal Funds Rate. The Federal Reserve is expected to hike their interest rate to 2.25% from 2.00% at 18:00 GMT. The event will be also covered by Dukascopy Analytics live.
USD/JPY short term analysis
In regards to the near future, most likely, the rate will surge upwards to the weekly R1 at the 113.10 mark. The 55-hour and the 100-hour simple moving averages are trying to catch up the rate to give additional support to the rate on Tuesday.On the other side, fundamental news may affect the rate to move to any side, which may break today's predictions for the currency exchange pair.
Hourly Chart
All of the patterns on the daily chart have been broken. A full review of the pair's daily chart will be conducted as soon as the surge of the USD/JPY ends and new reference points for charting are available.
Daily chart
On Tuesday, Swiss Foreign Exchange bearish sentiment remained almost unchanged, as 62% of traders were short.
This indicates that traders might be expecting a decline after the surge, which has occurred during the previous trading sessions.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, were balanced on Tuesday. Previously, 54% of all orders were set to buy the pair.
Spreads (avg, pip) / Trading volume / Volatility