- The Swiss traders are 55% short
- Trader pending orders in the 100-pip range are 56% to sell
- American data will impact markets
On Monday the USD/JPY trades above the 61.80 % Fibo. Moreover, the pair surges towards the weekly R1 at 112.97 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 a couple of American data releases this week that might impact the USD/JPY.For the first two days of the week there will be no macroeconomic data releases that might influence the USD/JPY . 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 Bureau of Economic Analysis will publish the Advance GDP q/q and the Advance GDP Price Index q/q at 12:30 GMT.
The data release is expected to cause some bounce in the USD/JPY currency pair.
USD/JPY short term analysis
In regards to the near-term future, most likely, the US Dollar will be supported by the 61.80% Fibo to trade at 112.80 level on Monday. However, the surge will not be significant due to a lack of any fundamental news during the trading session.On the other side, the rate might get resisted by the 61.80% Fibo to trade at 112.50 level 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
On Monday morning 55% of Swiss traders were short. Previously, 60% of traders were short.
Meanwhile, trader set up orders were almost neutral, as 56% of all trader set up pending orders were set to sell.
It can be observed, that most traders still expect the currency exchange rate to decline.