- The Swiss traders are 52% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 60% to buy the pair
- New patterns indicate that rate will trade sideways
After touching the 111.80 level the USD/JPY began a surge, which revealed two additional patterns on the currency exchange rate's charts. In general, they reveal that the rate is set to consolidate its position after the decline before continuing to decline.
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 key highlight from the official statement, "Fed raises target interest rate to 2.25-2.50 pct, reduces expected hikes for 2019 to two from three."
Minor US data ends the week
The week's data will end at 13:30 GMT. At that time the Canadian Retail Sales and GDP data will be published. Simultaneously the US Durable Goods data sets and Final GDP will be released.The above mentioned data release will be covered by Dukascopy Analytics. The event can be watched on our YouTube channel.
USD/JPY short term daily review
The USD/JPY continued its decline until the rate almost reached the 111.80 level. That point suddenly forced a retracement of the currency exchange rate. By using this point new descending patterns were drawn.In general, the rate is expected to resume its decline after trading sideways during the start of the next week. Use these patterns for guidance in the upcoming week.
Dukascopy Analytics will be off during the next week. Meanwhile, the market volatility will be low, as most of the financial field is also on vacation.
Hourly Chart
On the daily chart the rate has plummeted already to the 200-day simple moving average. It is the level, which could not be spotted on the hourly chart and actually stopped the decline.
Most likely the rate will trade horizontally until the SMA squeezes the rate into a strong resistance level.
Daily chart
The trader short sentiment continued to decrease throughout the week. On Friday, short positions were almost gone, as only 52% of traders kept short positions open.
Most likely, everyone had already taken profit from the decline and closed their positions before the holidays.
Meanwhile, trader set up pending orders, stop losses, take profits and position open orders in the 100-pip range were set to buy the USD/JPY in 60% of cases.
Shorting of the pair is over. Instead buy orders are ready to catch the possible retracement that could grow into a recovery of the USD/JPY.