- The Swiss traders are 69% short
- Trader pending orders in the 100-pip range are 52% to sell
- Macroeconomic trading begins on Wednesday
USD/JPY plummeted during the morning analysis period due to a fundamental event. The full investigation of the event will be released tomorrow in the Dukascopy Expert Commentary section.
The Institute for Supply Management released the ISM Non-Manufacturing PMI data that came out better-than-expected of 61.6 , compare to forecasted 58.0.
Anthony Nieves, the ISM Chair says: "The non-manufacturing sector has had two consecutive months of strong growth since the 'cooling off' in July. Overall, respondents remain positive about business conditions and the current and future economy,". However, "concerns remain about capacity, logistics and the uncertainty with global trade."
Wait for Wednesday
As it is the second week of the month, it is almost empty on the economic calendars. Namely there are only three worth mentioning events scheduled for this week.
First two macroeconomic data releases will occur on Wednesday. At 08:30 GMT the GDP and Manufacturing Production of the United Kingdom will be released. Afterwards, at 12:30 GMT the US PPI and Core PPI data sets will be out.
The third event will be the publication of the US CPI and Core CPI data at 12:30 GMT on Wednesday.
All of the mentioned data releases will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is set to be published.
USD/JPY short term analysis
In regards to the near-term future, the US dollar will trade sideways due to the resistance of the 55-hour and the 100-hour SMAs together with the resistance of the weekly PP at the 113.94 mark. Moreover, the rate is supported by the 200-hour SMA and the medium ascending pattern's bottom line, which should not let the rate to go downwards during the day.However, the strong resistances may let the rate to pass the supports, and on the other side, the strong supports may let the rate to break the resistances.
Hourly Chart
The recent bounces caused by fundamental events in both the US and Japan have been crashing one large scale pattern after another. However, the most dominant channel up pattern remains intact.
Daily chart
On Friday, 63% of traders were short on the USD/JPY. On Monday, that number had increased to 69%. This indicates that most Dukascopy traders have profited from the decline of the currency exchange rate.
Meanwhile, trader set up orders were set to possibly push the rate even lower, as 53% of all orders were set to sell.
SWFX traders continue to profit from the decline of the USD/JPY for a second consecutive trading session.