- The Swiss traders are 60% short
- Trader pending orders in the 100-pip range are 56% to buy
- Canadian data will impact markets
On Friday the USD/JPY traded still below the resistance levels at 112.60. Although, the pair had made a retreat back down to the 112.00 level, which might have triggered a lot of trader pending orders.
Last week the Bureau of Labor Statistics released US PPI data that came out in line with expectations of 0.2%.
"The Producer Price Index for final demand increased 0.2 percent in September, as prices for final demand services rose 0.3 percent, and the index for final demand goods decreased 0.1 percent. The final demand index advanced 2.6 percent for the 12 months ended in September." the U.S. Bureau of Labor Statistics announced on Wednesday.
No more data impacting the rate
There are no more data releases this week that might impact the USD/JPY.Although, macroeconomic data release traders are still set to be active this week. Data is set to be published in the United Kingdom and Canada. Although, macroeconomic data release traders are still set to be active this week.
The data release with the biggest impact will be on Friday. The Canadian statisticians will publish the Canadian CPI and Core Retail Sales at 12:30 GMT.
The data release is expected to cause a sudden bounce in the USD/CAD of almost 80 base points.
USD/JPY short term analysis
In regards to the near-term future, most likely, the US dollar will be supported by the 55-hour and the 200-hour SMAs to push the rate to trade on the higher level to break the resistance of the monthly PP at the 112.60 mark.On the other side, the monthly PP at 112.60 may resist the currency exchange pair to push the rate to trade backwards at 112.40 level.
Hourly Chart
If one observes the daily chart, it can be seen that the lower trend line of the most dominant ascending pattern forced the pair into a rebound.
Due to that reason it is expected that the USD/JPY will continue to surge in the pattern. Although, a full confirmation of the rise of the pair will occur, as the resistance levels near 112.60 are passed.
Daily chart
On Friday, still 60% of all Swiss Retail Forex traders were short on the USD/JPY.
Meanwhile, trader set up orders were almost neutral, as 52% of all trader set up pending orders were set to sell.
It can be observed, that most traders still expect the currency exchange rate to decline.