- The Swiss traders are 59% short
- Trader pending orders in the 100-pip range are balanced
- No US data affecting the USD/JPY during the week
The USD/JPY has reached the previously set target of 112.27. On Tuesday, the rate had retreated down to the 55-hour SMA below the 112.00 mark.
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, most likely, the rate will keep trading sideways with the support of the 55-hour simple moving average and the resistance of the monthly R1, staying at the 112.00 level during the day.On the other hand, the rate might break the resistance of the monthly R1 and the resistance of the upper boundary of the medium pattern to trade near the weekly R1 at the 112.55 mark.
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.
Since 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, had become slightly bearish on Tuesday, as 52% of trader set up pending orders were set to sell.
Spreads (avg, pip) / Trading volume / Volatility