- The Swiss traders are 64% short
- Trader pending orders in the 100-pip range are neutral
- US data will come on Friday
The USD/JPY has broken an ascending pattern and fallen. During the decline the rate fell below the 114.00 mark and various technical levels.
The Institute for Supply Management released the ISM Non-Manufacturing PMI data that came out better-than-expected of 61.6 , compare to forecasted 58.0.
Anthony Nieves, the ISM Chair says: "The non-manufacturing sector has had two consecutive months of strong growth since the 'cooling off' in July. Overall, respondents remain positive about business conditions and the current and future economy,". However, "concerns remain about capacity, logistics and the uncertainty with global trade."
Last and only data will come on Friday
All traders should note that on Friday at 12:30 GMT the US employment data sets like the Employment Change and Average Hourly Earnings will be published. By some financial media this event is seen as the most important of them all.
Join the event's cover webinar at 12:20 GMT to participate and see the data release live.
USD/JPY short term analysis
In regards to the near future, the rate will trade sideways due to the resistance of the weekly R1 at the 114.13 mark and the SMAs. Also, the rate is supported by the 200-hour SMA at the bottom boundary of the large ascending pattern. Most likely, the rate will trade at the 113.60 level during the day.On the other side, the rate might break the resistance of the SMAs and use the SMAs as support to break the weekly R1 at the 114.13 mark.
Hourly Chart
New patterns were drawn both on the daily and hourly charts. Zoom out to take a better look on the medium scale ascending pattern.
Daily chart
Traders remain bearish, as 63% of trader open USD/JPY positions were short on Friday Most likely the traders, who opened short positions were expecting a decline after the recent gains of the USD.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, were balanced on Friday.
The retail traders, which were expecting a decline of the US Dollar against the JPY have profited from the just occurred descent of the rate.