- The Swiss traders are 63% short
- Trader pending orders in the 100-pip range are 60% to sell
- Last US data is released on Thursday
The decline of the USD/JPY continued, as the rate reached the 112.00 level. Although, the pair had made a pause on Thursday morning by trading almost sideways.
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 CPI on Thursday
First two macroeconomic data releases occurred on Wednesday. Namely, the GDP and Manufacturing Production of the United Kingdom and the US PPI and Core PPI data sets were released.
The third event will be the publication of the US CPI and Core CPI data at 12:30 GMT on Thursday.
In addition, data release traders will watch the publication of the weekly US Crude Oil Inventories at 15:00 GMT.
All of the mentioned data releases will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is set to be published.
USD/JPY short term analysis
In regards to the near-term future, most likely, the US dollar will trade downwards due to the resistance of the weekly S3 at the 112.31 mark. The simple moving averages will try to catch up the rate during the session. It is expected that the rate will trade at the 111.80 level on Thursday.However, today's significant US fundamental data sets may break the prediction for this currency pair. Watch out for the news!
Hourly Chart
On the daily chart it could be spotted that the USD/JPY had no support below it before the combination of the 55-day simple moving average and the lower trend line of the large scale ascending pattern at the 111.80 mark.
Daily chart
Since Monday, 69% of traders were shorting the USD/JPY. On Wednesday that changed, as by the middle of the day's trading 66% of traders were short.
By the middle of Thursday the trend had continued as 63% of traders were short.
Meanwhile, trader set up orders were set to possibly push the rate even lower, as 58% of all orders were set to sell.
It can be assumed that some SWFX traders took profits from their shorting of the USD/JPY, as the rate began to trade sideways. Although, if the pair continues to decline, the traders will reopen their short positions.