- The Swiss traders are 60% short
- Trader pending orders in the 100-pip range are set to buy in 60% of all cases
- No US data affecting the USD/JPY during the week
The USD/JPY has reached the previously set target of 112.27. On Tuesday, the rate had retreated down to the 55-hour SMA below the 112.00 mark.
The Bureau of Labor Statistics released CPI data that came out lower-than-expected of 0.2%, compare to forecasted 0.3%.
The U.S. Bureau of Labor Statistics announced: "The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in August on a seasonally adjusted basis, the same increase as in July,"
No data during the week for USD/JPY
During this week there will be no notable data from the US. However, note that on Wednesday the Bank of Japan will released a Monetary Policy Statement.
Meanwhile, note that there will be macroeconomic data releases occurring during the week, which will impact other currencies and commodities.
On Wednesday, at 14:30 GMT the weekly US Crude Oil Inventories data will be published. As usual, it is expected to cause fluctuations in the 50 base point range on the oil price charts.
On Thursday, all attention of macroeconomic data release traders will be set on the UK Retail Sales data at 08:30 GMT.
The week's macroeconomic releases will end on Friday. On that day the Canadian CPI and Retail Sales data sets will influence the strength of the Canadian Dollar at 12:30 GMT.
USD/JPY short term analysis
In regards to the near future, most likely, the rate will surge upwards to break the weekly R1 at the 112.54 mark and afterwards the rate might bounce off the upper boundary of the large-scale descending pattern to trade near the 112.40 level during today's session.However, the rate might break the long-term pattern to move towards the weekly R2 at the 113.01 level.
Hourly Chart
The previous version of the ascending medium scale channel up pattern of the daily chart was broken on Tuesday. The second version was still holding ground and keeping the USD/JPY from surging.
In accordance with the still holding daily chart's pattern, the currency pair should reach the 112.50 level on Thursday. After reaching resistance at 112.50 the rate should begin a decline, as it will meet with the upper trend line of a large scale descending pattern.
Daily chart
Since Monday, 58% of trader open positions were short. On Wednesday, already 60% of trade open positions were short.
Most likely the short term oriented Swiss traders have opened up this position in the expectations of a decline, which should follow the recent surge.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, remained in the neutral zone. On Wednesday, 51% of set up orders were set to buy.
Spreads (avg, pip) / Trading volume / Volatility