- The Swiss market sentiment is 52% bullish
- Trader pending orders in the 100-pip range are set to sell in 53% of all cases
- Notable macroeconomic data will be published only on Wednesday
On Monday morning the USD/JPY was facing very strong resistance levels, indicating that it will decline. Meanwhile, note on the daily chart that the pair's decline is slowed down by the 100-day simple moving average.
Last week was full of US data. For example, see the video with the cover of the release of various US employment data sets on Friday.
Fundamental bounces are not expected until Wednesday
During the first half of the week there will be no notable data releases occurring in the United States. On Wednesday, the US PPI data release will occur at 12:30 GMT. The event will be covered by Dukascopy Analytics on the bank's webinar platform.
Meanwhile, note that macroeconomic data release traders will have something to do until Wednesday. On Tuesday, at 08:30 GMT the United Kingdom's Average Earnings Index will be published.
USD/JPY short term analysis
In regards to the near future, most likely the rate will bounce off the weekly PP at the 111.05 level to move downwards during the day. Meanwhile, the monthly PP with the support of the 23.60% Fibo together with the 200– hour and the 100-hour SMAs should provide additional resistance for the rate to move downwards.However, the 55-hour simple moving average and a monthly PP at 111.02 may play role of support and push the rate upwards to the 111.40 level.
Hourly Chart
On the daily chart the descending pattern continues to guide the rate. Although, note the support of the 100-day simple moving average, which has once more proven itself as a strong technical indicator by pushing the currency exchange rate higher.
Daily chart
The Swiss Foreign Exchange sentiment was 52% long on Monday. Compared to Friday's 54% bullishness, one can deduct that short term retail traders have been selling the USD/JPY.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, were set to sell in 54% of all cases, indicating that more selling is to be expected.
The brokerages with more long term clients remained almost neutral on Monday. Saxo Bank traders are 52% short. Meanwhile, OANDA traders have 52% of open positions at the brokerage short.
Spreads (avg, pip) / Trading volume / Volatility