Economic Calendar
The week will be calm. There are no events that could impact the rate up to Friday.
On Friday, the publication of the Manufacturing and Services sector Purchasing Managers Indices could cause an adjustment in currencies.
The US PMIs will be out at 13:45 GMT. In most cases, the reaction to the publication is minor or the PMI publication turn out to be what is called a non-event.
USD/JPY hourly chart analysis
Resumption of the prior surge would first have to break the 50 and 100-hour simple moving average. Afterwards, the weekly R1 simple pivot point at 156.46 and the 156.50/156.75 zone are set to act as resistance, before new highs are reached.In the meantime, a decline below the major support cluster near 154.50 is highly likely almost immediately going to find support at 153.60/153.90. The support cluster is made up of the weekly simple pivot point, 200-hour simple moving average and the 154.50/154.75 zone.
Hourly Chart
USD/JPY daily candle chart analysis
On the daily candle chart, the pair is above the 200-day simple moving average and the 154.00 mark's resistance has turned into support. In addition, the ascending pattern remains intact. Larger scale next resistance is the 158.00 level.A passing below the 154.00 level and the 200-day SMA might result in a decline to the 150.00 mark and the 50-day simple moving average.
Read More: Technical Analysis
Traders are sitting in long positions
Before the US elections, Dukascopy traders positions were bullish, as open position volume was 68% long.
Meanwhile, pending orders in the 100-point range around the rate were 57% to buy.
Last week, 73% of positions were long. Orders were 56% to buy.
On November 18, 74% positions were bullish and orders were 52% to buy. It appears that traders were not shaken by the retracement back to 154.00.
Meanwhile, pending orders in the 100-point range around the rate were 57% to buy.
Last week, 73% of positions were long. Orders were 56% to buy.
On November 18, 74% positions were bullish and orders were 52% to buy. It appears that traders were not shaken by the retracement back to 154.00.