- The Swiss traders are 68% short
- Trader pending orders in the 100-pip range are set to sell 51% of all cases
- Only Canadian data at 12:30 GMT
On Friday, the USD/JPY jumped and reached above the 113.50 mark. By the middle of Friday the rate was trading between two levels of significance, but was still expected to surge.
Meanwhile, the most notable update was the fact that the recent surge provided a reference point for charting a long term pattern.
The Census Bureau released the US Durable Goods Orders data that came out better-than-expected of 4.5%, compare to forecasted 1.9%
On Wednesday, the Federal Reserve raised interest rates for the third time this year during the US Federal Funds Rate data release. Chairman Jerome Powell told reporters that this was "a particularly bright moment" for the economy.
Canadian data ends the week at 12:30 GMT
Macroeconomic data release traders need to take into account that there will be more releases on Friday.
At 08:30 GMT the UK Current Account will be published, and at 12:30 GMT the Canadian GDP data will be published.
Both events will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is released.
USD/JPY short term analysis
In regards to the near future, the rate will surge to the weekly R2 at the 113.59 mark but might bounce off the level to keep trading in the 113.50 are during the day. During the Friday trading session, the simple moving averages will try to catch up the rate to give additional support to break the resistance of the weekly R2.On the other side, the rate might ignore the weekly R2 resistance to break through the 113.59 level to trade in the 113.70 area.
Hourly Chart
The recent low level from September 27, if used as a reference point for an ascending pattern's support line, reveals a new ascending pattern.
However, this pattern is still not wide enough to represent the medium term surge that is occurring in the borders of the larger pattern. Use its trend lines for guidance carefully.
Daily chart
Meanwhile, trader continued to short the USD/JPY. On Thursday, 71% of traders had open short positions. On Friday, 68% of traders were short. This indicates that there was profit taking occurring, as the decline ended.
The most positive aspect about the open position proportion is the fact that those 61% of traders actually profited, as the market declined.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, were neutral.