- The Swiss traders are 58% short
- Trader pending orders in the 100-pip range are set to buy in 68% of all cases
- No US data affecting the USD/JPY during the week
The USD/JPY managed to surge above the 112.80 level on Friday. The surge was caused by the rate finding support in the lower trend line of a medium pattern on Thursday.
The Office for National Statistics released United Kingdom Retail Sales data that came out better-than-expected of 0.3%, compared to forecasted negative 0.2%.
Rhian Murphy, the senior statistician at the Office for National Statistics (ONS) commented: "Retail sales remained strong in the three months to August, with continued growth across all sectors. Food and household goods stores particularly benefitted from the warm weather when compared with last summer."
Week will end with only Canadian data
The week's macroeconomic releases will end on Friday. The Canadian CPI and Retail Sales data sets will influence the strength of the Canadian Dollar at 12:30 GMT.
The event will be covered by Dukascopy Analytics on the bank's live webinar platform. The cover webinar will begin at 12:20 GMT.
USD/JPY short term analysis
In regards to the near future, the rate will surge upwards to the weekly R2 at 113.01 mark, which could stop the rate from surge due to its resistance for the rate. Most likely, the US Dollar will be traded in the 112.80 area during Friday's session.On the other side, the US Dollar may break the resistance of the weekly R2 at 113.01 mark to surge to the Fibonacci retracement level at 113.18 mark.
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 Friday, Swiss Foreign Exchange open positions were short in 58% of all cases. The sentiment has been like this since Monday. The exception was the 60% short open position dominance on Wednesday.
The data indicates that retail traders were profiting from the descent of the rate when the sudden surge hit their positions.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, remained in the neutral zone. On Friday, 52% of set up orders were set to buy.
Spreads (avg, pip) / Trading volume / Volatility