- The Swiss traders are 59% short
- Trader pending orders in the 100-pip range are 66% to buy
- US Retail Sales release at 12:30 GMT
The USD/JPY has booked a new low level.Namely, the 111.70 level was touched on Monday. In addition, it is highly possible that the 111.50 level will be reached during the day's trading.
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.
US Retail Sales at 12:30 GMT
Usually Monday's are empty on the economic calendar. Today is an exception. The US Retail Sales data sets will be published at 12:30 GMT.
The data release cover will begin on the webinar platform at 12:20 GMT.
Meanwhile, macroeconomic data release traders will also be on alert on Tuesday morning. At 08:30 GMT the UK Average Earnings index and other UK's employment data sets will be published.
USD/JPY short term analysis
In regards to the near-term future, most likely, the US dollar will trade downwards to the monthly S1 at the 111.49 mark. The US retail sales data sets will come out at 12.30 GMT on Monday.In addition, it is expected that the currency pair might pass the monthly S1 and the weekly S1 at the 111.39 mark due to the fundamentals.
Hourly Chart
Meanwhile, note that the rate's decline might be stopped by the lower trend line of a large scale ascending pattern near the 111.70 mark.
In addition, the 55-day SMA was providing resistance in the morning hours to the rate at 111.80. Moreover, the daily chart reveals that the 100-day simple moving average was located close by. Namely, the SMA was located at 111.30.
Daily chart
On Monday, 59% of trader open positions were short.
Meanwhile, trader set up orders were almost neutral, as 51% of all trader set up pending orders were set to sell.
It can be seen that trader remain short, on Monday, as the pair stands at a support level. However, additional momentum will not be provided by the retail sector selling, as orders are neutral.