- The Swiss traders are 58% short
- Trader pending orders in the 100-pip range are set to buy in 68% of all cases
- No US data affecting the USD/JPY during the week
The USD/JPY had a free range without resistance as high as the 113.10 level However, due to the market holiday in Japan there might be no large pushes upwards or declines during the day's trading session.
There were no data releases affecting the USD/JPY in the couple of last weeks. However, this week the situation is set to change. See the Economic Calendar analysis to find out more.
US Federal Funds rate on Wednesday
First worth mentioning data release will be on Tuesday, as CB Consumer Confidence data release will most likely cause a small reaction in the financial markets. The data release is set to occur at 14:00 GMT, and it will be covered by the Dukascopy Analytics team.
Although, the most important day of the week for fundamentals will be Wednesday. The weekly US Crude Oil Inventories will be published at 14:30 GMT. The cover webinar for the release, will start as usual at 14:20 GMT.
Meanwhile, the most important data release will be the release of the US Federal Funds Rate. The Federal Reserve is expected to hike their interest rate to 2.25% from 2.00% at 18:00 GMT. The event will be also covered by Dukascopy Analytics live.
USD/JPY short term analysis
On Monday morning the USD/JPY was standing at the resistance of a previously broken large scale descending pattern.The rate was expected to surge up to the 113.10 level, where the next resistance level was located at. Namely, the weekly R1 was located at that level.
On the other hand, the pair might trade sideways above the 55-hour simple moving average at 112.50, as Monday is a market holiday in Japan.
Hourly Chart
All of the patterns on the daily chart have been broken. A full review of the pair's daily chart will be conducted as soon as the surge of the USD/JPY ends and new reference points for charting are available.
Daily chart
On Monday, Swiss Foreign Exchange bearish sentiment had increased from 58% on Friday to 63% of open position being short.
This indicates that traders might be expecting a decline after the surge, which has occurred during the previous trading sessions.
Meanwhile, trader set up orders, which could provide momentum to one or the other side, had become bullish. On Monday, 54% of set up orders were set to buy.
The amount of orders could be explained with the fact that all of the short positions have set up stop losses and take profits.
Spreads (avg, pip) / Trading volume / Volatility