- The Swiss traders are neutral on the USD/JPY
- Trader pending orders in the 100-pip range are 62% to buy
- US data sets will impact the rate
By the middle of Tuesday's trading the USD/JPY had plummeted down to the 50.00% Fibo at 112.16. The Fibonacci retracement seemed to have stopped the decline of the US Dollar against the Japanese Yen.
Although there haven't been data releases impacting the USD/JPY, on Friday the Canadian CPI and Retail Sales caused a massive reaction in the financial markets.
The US Dollar appreciated against the Canadian Dollar, following the CAD CPI and Core Retail Sales data release on Friday at 12:30 GMT. The USD/CAD exchange currency rate gained 69 pips or 0.53% during a minute, right after the release. The US Dollar continued trading at the 1.3087 area.
The Statistics Canada released CAD CPI data that came out lower-than-expected of negative 0.4% compared with forecasted negative 0.1%. Moreover, CAD Retail Sales data came out together with the CAD CPI data release with the data lower-than-expected of negative 0.4% compared with the forecasted 0.1%.
Two US data releases this week
There are a couple of American data releases this week that might impact the USD/JPY this week.First will be the US Durable Goods Orders and Core Durable Goods Orders data sets on Thursday at 12:30 GMT.
Second, although more important, will be the US Advance GDP data release on Friday also at 12:30 GMT.
Both data releases will be covered by Dukascopy Analytics on the bank's live webinar platform. Join the webinars at 12:20 GMT to see the live analysis of the sentiment, technical charts and historical data.
USD/JPY short term analysis
The US Dollar continued to plummet in value against the Japanese Yen on Tuesday. Namely, the rate had fallen down to the 112.15 mark by the middle of the day. At that level a 50.00% Fibonacci retracement level was located at.If the level does not stop the decline of the pair, it will reach for the lower trend line of the dominant ascending pattern near the 112.00 level.
On the other hand, the rate might bounce off the Fibo and surge up to the 112.30 level. At that level the 200-hour simple moving average together with the weekly PP were located at.
Hourly Chart
If one observes the daily chart, it can be seen that the lower trend line of the most dominant ascending pattern forced the pair into a rebound.
Due to that reason it is expected that the USD/JPY will continue to surge in the pattern. Although, a full confirmation of the rise of the pair will occur, as the resistance levels near 112.60 are passed.
Daily chart
On Tuesday, 50% of Dukascopy traders were neutral on USD/JPY. On Monday morning 55% of Swiss traders were short. Before that, 60% of traders were short.
Meanwhile, trader set up orders were almost neutral, as 51% of all trader set up pending orders were set to buy.
The traders, which were cautious, have closed long positions, as the rate declined and due to that reason the sentiment is neutral.