- The Swiss traders are 71% short
- Trader pending orders in the 100-pip range are set to buy in 60% of all cases
- US data at 12:30 GMT
The USD/JPY has declined and broken a junior pattern. Although, in regards to the future, it was expected that the rate might trade sideways due to two simple moving averages.
On Wednesday, the US Federal Fed funds rate hike occurred. The full review of the event will be available in the fundamental analysis section with the recording of the live cover webinar in the near future.
US data on Thursday
Although the US Federal Funds rate hike already occurred on Wednesday, the week is not over for release traders.
On Thursday, the US Durable Goods Orders, Core Durable Goods Orders and Final GDP will be published at 12:30 GMT. The event will be covered by Dukascopy on the bank's live webinar platform. The cover will begin at 12:20 GMT.
In addition, note that heads of central banks are set to give speeches during the day. Mario Draghi at 13:30 GMT. Jerome Powell at 20:30 GMT, and the head of the Bank of Canada at 21:45 GMT.
Moreover, macroeconomic data release traders need to take into account that there will be more releases on Friday. At 08:30 GMT the UK Current Account will be published, and at 12:30 GMT the Canadian GDP data will be published.
USD/JPY short term analysis
On Thursday morning the rate was heading for the 200-hour simple moving average, which was located at the 112.50 mark. Meanwhile, the rate faced the resistance of the 55 and 100-hour simple moving averages respectively at 112.87 and 112.77.Most likely the rate will be squeezed by these levels. Watch the rate until it makes a break out from the occurring squeeze either down to the 112.40 level or up to the 113.10 level.
Hourly Chart
As it was stated in the previous description of the daily chart, the ascending junior pattern was too narrow to hold. Most likely it is junior to a medium pattern of the daily chart.
The medium pattern will be most likely discovered in the near future.
Daily chart
Swiss Foreign Exchange bearish sentiment has massively increased. Previously 61% of traders were short. On Thursday, already 71% of traders were short. Most likely due to the breaking of the pattern, which also marks the end of the surge.
The most positive aspect about the open position proportion is the fact that those 61% of traders actually profited, as the market declined.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, were neutral.
Spreads (avg, pip) / Trading volume / Volatility