- The Swiss traders are 66% short
- Trader pending orders in the 100-pip range are 55% to buy
- No more data impacting the USD/JPY
As it was expected, the USD/JPY broke resistance near the 112.00 mark.Following the event, by the middle of Wednesday's trading the currency rate had reached the 112.40 mark.
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.
No more data impacting the rate
There are no more data releases this week that might impact the USD/JPY.Although, macroeconomic data release traders are still set to be active this week. Data is set to be published in the United Kingdom and Canada.
Namely, UK CPI will be published on Wednesday and UK's Retail Sales data will be out on Thursday. Both data releases are expected to cause a big impact on the strength of the GBP. The data releases will occur at 08:30 GMT on both days.
Meanwhile, note that the data release with the biggest impact will be on Friday. The Canadian statisticians will publish the Canadian CPI and Core Retail Sales at 12:30 GMT.
USD/JPY short term analysis
In regards to the near-term future, the US dollar will trade upwards to the monthly PP at 112.60 level due to the support of the 100-hour and 55-hour SMAs.On the other side, the currency exchange rate could depreciate to pass through the SMAs due to today's US Federal Open Market Committee's Meeting Minutes publications at 18:00 GMT.
Hourly Chart
If one observes the daily chart, it can be seen that the lower trend line of the most dominant ascending pattern force the pair into a rebound.
Due to that reason it is expected that the USD/JPY will continue to surge in the pattern. Although, a full confirmation of the hypothesis will occur, as the resistance levels near 112.60 are passed.
Daily chart
On Wednesday, 66% of trader open positions were short, which clearly was signalling that the rate is oversold by the retail sector.
Meanwhile, trader set up orders were almost neutral, as 52% of all trader set up pending orders were set to sell.
It can be seen that trader remained short even as the currency exchange rate has surged.