- The Swiss traders are 65% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are set to buy in 54% of cases
- First and only US data release today at 13:30 GMT
The surge of the USD/JPY continues, as it gains more and more. Although, the surge has to pause from time to time, as the rate has to climb higher gradually and slowly. In that way also traders can take advantage of it.
Latest Fundamental Event
The Census Bureau released US Core Durable Goods Orders data that came out lower than expected of 0.1 compared with forecasted 0.4%. Moreover, the US Durable Goods Orders data came out together with the US Core Durable Goods Orders with the data lower-than-expected of negative 4.4% compared with the forecasted negative 2.2%.
"New orders for manufactured durable goods in October decreased $11.5 billion or 4.4 percent to $248.5 billion", the U.S. Census Bureau announced today.
Only data for USD/JPY is the US GDP on Wednesday
This week is the last one of the month. That means that it is bound to be empty in regards to macroeconomic data releases.First notable data release will occur this week on Wednesday. The US Preliminary GDP data will be published at 13:30 GMT. This data release is considered to be the most important among macroeconomic statistics. Although, it causes an increase of volatility around 10 to 20 base points.
On Wednesday, at 15:30 GMT the weekly US Crude Oil Inventories will be published and cause a bounce in oil prices.
On Thursday, the only notable macroeconomic scheduled event, but not a data release, will be the FOMC Meeting Minutes release at 19:00 GMT.
Last, but most important for data release traders, will be the Canadian GDP data release at 13:30 GMT. This event is expected to cause the most volatility that a data release can cause. Although, it will be only observable on Canadian Dollar pairs.
All of these events will be covered live by Dukascopy Analytics. The live coverages will begin ten minutes before the event. They can be watched on the Dukascopy Webinars platform and the YouTube channel.
USD/JPY short term daily review
During Tuesday's trading session, the currency exchange rate broke the resistance of the weekly R2 to end the trading session at the 113.75 mark. On Wednesday morning, the US Dollar was kept surging upwards to trade at the 113.86 mark.In regards to the near-term future, the US Dollar will keep surging upwards to trade at the 114.00 level on Wednesday. The 55-hour simple moving average will try to catch up the rate during the day.
On the other side, the US Dollar could depreciate against the Japanese Yen during today's US Prelim GDP and Crude Oil Inventories data releases to push the rate to pass through the support of the weekly R2 at 113.74 to trade at the 113.60 level.
Hourly Chart
On the daily chart there is an additional aspect to note. The currency exchange rate is facing a resistance line that can be drawn by connecting the September and October high levels. That level needs to be passed in order for the USD/JPY to reach 114.30 level.
Daily chart
The Swiss Foreign Exchange sentiment remains short on the USD/JPY. On Wednesday, 65% of trader open positions were short.
In the meantime, trader set up orders in the 100 base point range were neutral on Tuesday. By the middle of Wednesday's trading session the trader pending orders were set to sell in 55% of cases.
Instead of just shorting the USD/JPY, like it was done previously, on Wednesday traders had in addition set up pending sell orders that could open more short positions.