- The Swiss traders are 64% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are set to buy in 56% of cases
- Busy week for macroeconomic data traders
The USD/JPY was plummeting on Tuesday, breaking technical charts. The rate had lost 90 base points by the middle of the day's trading session.
Latest Fundamental Event
The Federal Reserve releases US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
The minutes said, "Almost all participants expressed the view that another increase in the target range for the federal funds rate was likely to be warranted fairly soon".
Busy week for macroeconomic data releases
On Tuesday, traders will concentrate on the UK Construction PMI at 09:30 GMT. The data release is expected to cause a minor reaction on the GBP/USD pairs.On Wednesday, the ECB President Draghi might impact the EUR/USD during his speech at 08:30 GMT.
Afterwards, note the UK Services PMI release at 09:30 GMT. This event will be covered by Dukascopy Analytics
That will not be all on Wednesday. At 15:00 GMT the Bank of Canada will make interest rate announcement. This event has caused the largest fluctuations in the forex markets during 2018. This will be the top event for the month for macroeconomic event traders.
Meanwhile, note that there are changes in the calendar due to the funeral of George Bush senior. Namely, Wednesday's events in the US have been moved to Thursday.
At 13:15 GMT on Thursday the ADP Non-Farm Employment change will be published and covered by Dukascopy Analytics on the bank's webinar platform and YouTube channel.
Moreover, the weekly Crude Oil Inventories will be published at 16:00 GMT. This data release causes bounced in oil prices from half a dollar up to ninety cents.
The day will end with the head of the Federal Reserve testifying before the US Congress at 11:45 GMT.
Last but not least will be the Friday's monthly US and Canadian employment data release at 13:30 GMT. This event will also be covered by Dukascopy Analytics.
USD/JPY short term daily review
During Monday's trading session, the currency exchange rate was supported by the 55-hour SMA to end the trading session at the 113.55 mark. During Tuesday's morning hours, the US Dollar depreciated by 0.35% to trade at the 113.12 mark.In regards to the near-term future, most likely, the US Dollar will trade sideways to stay at the freshly drawn trend line. It is expected that the currency exchange pair will be trading below the monthly PP at 113.34 to stay at the 113.00 level during the day.
On the other side, the US Dollar could pass through the support of the freshly drawn pattern line to trade towards the weekly S1 at the 112.91 mark.
Hourly Chart
On the daily chart it looks like the resistance trend line of the last half a year high levels has pushed the rate into a retest of the lower trend line of the dominant ascending pattern.
In addition, note that the support of the 55-day simple moving average together with the weekly S1 near the 113.00 level could not stop the USD/JPY from dropping.
Daily chart
On Monday, 65% of traders were short on the pair. On Monday, 64% of traders were short. It indicates that Dukascopy traders were making money from the decline.
By the middle of Monday's trading, 61% of orders in the 100-base point range were set to buy the pair. On Tuesday, 57% of set up orders were to buy.
It can be assumed that traders were shorting the decline, but had close by take profits and stop losses to book profits, as the decline ends.