- The Swiss traders are 58% short
- Trader pending orders in the 100-pip range are set to sell in 51% of all cases
- No US data affecting the USD/JPY during the week
On Monday, the USD/JPY found support in an SMA and began a surge to the 112.30 mark. Up to that level no resistance is facing the USD/JPY currency exchange rate.
The European Single Currency appreciated against the US Dollar, following the United States CPI data release on Thursday at 12:30 GMT. The EUR/USD exchange currency rate gained 22 pips or 0.19% during a minute, right after the release, which pushed the rate to go upwards to trade at the 1.1680 level.
The Bureau of Labor Statistics released CPI data that came out lower-than-expected of 0.2%, compare to forecasted 0.3%.
The U.S. Bureau of Labor Statistics announced: "The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in August on a seasonally adjusted basis, the same increase as in July,"
No data during the week for USD/JPY
During this week there will be no notable data from the US. However, note that on Wednesday the Bank of Japan will release a Monetary Policy Statement. Although, the central bank does not set a certain time for the event.
Meanwhile, note that there will be macroeconomic data releases occurring during the week, which will impact other currencies and commodities.
On Wednesday at 08:30 GMT the UK CPI will be published. This data release will be covered by Dukascopy Analytics on the bank's live webinar platform. Join the platform ten minutes before the event to watch the coverage.
On the same day at 14:30 GMT the weekly US Crude Oil Inventories data will be published. As usual, it is expected to cause fluctuations in the 50 base point range on the oil price charts.
On Thursday, all attention of macroeconomic data release traders will be set on the UK Retail Sales data at 08:30 GMT.
The week's macroeconomic releases will end on Friday. On that day the Canadian CPI and Retail Sales data sets will influence the strength of the Canadian Dollar at 12:30 GMT.
USD/JPY short term analysis
In regards to the near future, the rate will surge upwards to the upper boundary of the medium ascending line at the 112.20 level and the monthly R1 at the 112.27 mark and most likely, the rate will bounce off the pattern line to move back into the previously drawn trend-line.Moreover, the 55-hour simple moving average should give additional support for the currency pair during the trading day.
Hourly Chart
The resistance of the previously drawn pattern was already reached on Friday, when the channel up pattern of the daily chart was drawn.
The upper trend line of this pattern is providing resistance to the USD/JPY in a way, which is holding it back from reaching the 112.30 level.
Meanwhile, note that there are two possible ways how to chart the medium term ascending pattern. The second option does not hold the USD/JPY below the 112.30 level.
Daily chart
The Swiss Foreign exchange retail traders are no longer bouncing around the 50/50 proportion in their open positions. On Monday, 58% of trader open positions were short. Most likely due to the recent bounce off from the dominant resistance line.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, were still balanced.
In addition, at other brokerages the same sentiment could be observed. Traders at Oanda were perfectly 55% short, compared to the previous neutral sentiment. Saxo Bank sentiment was more bearish than previously, as 61% of open positions were short at the brokerage.
Spreads (avg, pip) / Trading volume / Volatility