- The Swiss traders are 56% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 56% to buy
- US CPI at 13:30 GMT will impact the currency rate
By trading horizontally the USD/JPY has broken the support of a junior ascending pattern that was drawn on the hourly chart. Meanwhile, note that the currency rate is still bouncing around in limbo around the 55 and 100-hour simple moving averages.
Latest Fundamental Event
Last week the Bureau of Labor Statistics released US PPI data that came out better than expected of 0.6%, compare to forecasted 0.2%.
"The Producer Price Index for final demand rose 0.6 percent in October, as prices for final demand services advanced 0.7 percent, and the index for final demand goods moved up 0.6 percent. Prices for final demand increased 2.9 percent for the 12 months ended in October.'' The U.S. Bureau of Labor Statistics reported on Friday.
US CPI will impact the USD/JPY
On Wednesday, there are two data releases that are set to be covered. Namely, at 09:30 GMT the UK CPI was published. Afterwards, at 13:30 GMT the US CPI and Core CPI data sets will be released.
Thursday will be the last day with notable data releases. At 09:30 GMT the British will publish their retail sales data. Afterwards, at 13:30 GMT the US statisticians will publish their retail sector data.
For more in-depth analysis of this week's fundamental economic events watch the weekly Monday's Poking the Economic Calendar webinar, which is live each Monday at 12:00 both on Dukascopy telefision and YouTube.
USD/JPY short term analysis
In regards to the near-term future, most likely, the US Dollar trade sideways at the 114.00 mark. The 100-hour SMA should support the rate during the trading session.On the other side, the US Dollar might depreciate against the Japanese Yen during today's US CPI data release at 13:30 GMT to push the rate to trade below the 100-hour simple moving average at the 113.60 level.
Hourly Chart
What can be deducted from the daily chart is that the currency exchange rate is very far above the daily simple moving averages. It indicates that a decline has to occur in the future or the currency rate has to trade sideways.
Daily chart
Traders are 56% bearish on Tuesday. The bearish sentiment has been decreasing by one percent each day since Friday.
In the meantime, the trader pending orders are almost neutral. Namely, the 53% of trader set up orders are set to buy.
Since Tuesday the biggest change is that there are no longer present the sell orders, which could have pushed the currency exchange rate lower.