- Swiss market sentiment is 53% bearish
- 51% of pending orders in the 100-pip range are set to SELL
- Next notable event is on Friday
The USD/JPY has managed to surge and almost touch the 111.00 mark. Although, on Thursday morning the surge was being slowed down by the resistance of the 55-day simple moving average.
The Census Bureau released Retail Sales data that came better-than-expected of 0.5% to forecasted 0.1%. The data represents a good sign for the Greenback, as well as an increase of total value of sales at the retail level.
Michael Feroli, an economist at JPMorgan Chase said: "It gives us comfort that consumers are nowhere near to being as overstretched as they were in the years heading into the Great Recession".
Empty Thursday for macro releases
There are no notable macroeconomic data publications scheduled for Thursday's trading session. Although, note that on Friday there are two very important events scheduled.
Most notable of the two is the scheduled speech of the head of the Federal Reserve Jerome Powell at the Jackson Hole Symposium at 14:00 GMT.
Meanwhile, macroeconomic data release traders will pay most attention at 12:30 GMT on Friday. At that time the US Durable Goods Orders data sets will be published. The event will be covered by Dukascopy Analytics on the bank's live webinar platform. The cover will start at 12:20 GMT.
USD/JPY passes monthly PP
The Japanese Yen has still be depreciating against the US Dollar during the last two days. The main pair passed through the monthly PP( 110.692) at midnight on Thursday. In general, the US Dollar recovered 0.34% from Wednesday night until Thursday morning.On Thursday morning, the main pair was at 1.1083 showing bullish signals. The US Dollar passed through all SMAs during the night. The 200-hour simple moving average is expected to be the support for the currency pair for the day. It seems that the 55-hour and 100-hour SMAs should cross at today's trading session giving strong buy signals for traders.
Hourly Chart
On Tuesday, Dukascopy Analytics drew the possible borders of a dominant descending channel pattern. However, note that the lower trend line of the pattern has not been confirmed properly.
Meanwhile, it is more important to note that the 100 and 200-day simple moving averages were supporting the currency rate during the recent decline and might have been one of the many reasons, why a surge took place.
Daily chart
Swiss Foreign Exchange sentiment was 56% short on Thursday morning.
In the meantime, trader set up orders remain in the neutral zone, as 50% of pending commands are long.
Saxo Bank traders are 56% long on the pair. Meanwhile, OANDA traders are 54% long on the pair.
It can be clearly seen that the global forex market participants are unsure what will be the next move on the charts of the USD/JPY, as the bears and bulls are almost balanced.
Spreads (avg, pip) / Trading volume / Volatility