- The Swiss traders are 59% short
- Trader pending orders in the 100-pip range are 53% to buy
- No data impacting the USD/JPY
The surge of the US/JPY has continued, as expected.Moreover, the rate is expected to continue to gain ground.
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. Although, macroeconomic data release traders are still set to be active this week.
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.
The data release is expected to cause a sudden bounce in the USD of almost 80 base points.
USD/JPY short term analysis
In regards to the near-term future, most likely, the US dollar will trade upwards to the 113.00 level due to the support of the 200-hour simple moving average.On the other side, the currency exchange rate could be resisted by the 61.80 % Fibo at 112.72 mark to push the rate to trade at 112.40 mark during the day.
Hourly Chart
If one observes the daily chart, it can be seen that the lower trend line of the most dominant ascending pattern forced 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 rise of the pair will occur, as the resistance levels near 112.60 are passed.
Daily chart
As the rate surges, retail traders close short positions. Namely, on Thursday 59% of traders were bearish on the pair.
Previously, 66% of trader open positions were short, which clearly signalled that the rate was oversold by the retail sector.
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 the traders needed some time and additional confirmation of a reversal to finally close their short positions.