- The Swiss traders are 58% short
- Trader pending orders in the 100-pip range are set to buy in 57% of all cases
- No US data affecting the USD/JPY during the week
The USD/JPY retreated on Thursday. Although, the rate was still expected to surge after it had found support in the lower trend line of an ascending pattern and the 100-hour simple moving average.
The Bureau of Labor Statistics released CPI data that came out lower-than-expected of 0.2%, compare to forecasted 0.3%.
The U.S. Bureau of Labor Statistics announced: "The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in August on a seasonally adjusted basis, the same increase as in July,"
Week will end with only Canadian data
The week's macroeconomic releases will end on Friday. On that day the Canadian CPI and Retail Sales data sets will influence the strength of the Canadian Dollar at 12:30 GMT.
USD/JPY short term analysis
In regards to the near future, most likely, the rate will surge upwards to fit back into the previously drawn pattern by breaking the monthly R1 at the 112.27 mark using the support of the 55-hour SMA to surge to the weekly R1 at the 112.54 mark.On the other side, the US Dollar may bounce off the monthly R1 at the 112.27 ignoring the support of the 55-hour simple moving average to trade near the 112.00 level.
Hourly Chart
The previous version of the ascending medium scale channel up pattern of the daily chart was broken on Tuesday. The second version was still holding ground and keeping the USD/JPY from surging.
In accordance with the still holding daily chart's pattern, the currency pair should reach the 112.50 level. After reaching resistance at 112.50 the rate should begin a decline, as it will meet with the upper trend line of a large scale descending pattern.
Daily chart
On Thursday, 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 are already shorting the pair and most likely profiting in the past two trading sessions.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, remained in the neutral zone. On Thursday, 51% of set up orders were set to sell.
Spreads (avg, pip) / Trading volume / Volatility