- The Swiss traders are 69% short
- Trader pending orders in the 100-pip range are 54% to sell
- Macroeconomic trading begins on Wednesday
After booking a new low level the USD/JPY recovered on Tuesday morning. Meanwhile, it turned out that the currency exchange rate declined due to mystic trader war fears. However, Dukascopy Analytics are clearly stating that the trade wars being mentioned without certain tariffs is just the current excuse for financial media in cases that they can't explain financial moves.
Previous week, the Institute for Supply Management released the ISM Non-Manufacturing PMI data that came out better-than-expected of 61.6, compare to forecasted 58.0.
Anthony Nieves, the ISM Chair says: "The non-manufacturing sector has had two consecutive months of strong growth since the 'cooling off' in July. Overall, respondents remain positive about business conditions and the current and future economy,". However, "concerns remain about capacity, logistics and the uncertainty with global trade."
Wait for Wednesday
As it is the second week of the month, it is almost empty on the economic calendars. Namely there are only three worth mentioning events scheduled for this week.
First two macroeconomic data releases will occur on Wednesday. At 08:30 GMT the GDP and Manufacturing Production of the United Kingdom will be released. Afterwards, at 12:30 GMT the US PPI and Core PPI data sets will be out.
The third event will be the publication of the US CPI and Core CPI data at 12:30 GMT on Wednesday.
All of the mentioned data releases will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is set to be published.
USD/JPY short term analysis
In regards to the near-term future, most likely, the US dollar will trade downwards to the weekly S2 at the 112.91 mark during the day. The weekly S2 resists the rate at the 113.33 mark, which should give an additional push for the rate to trade downside.Besides, the simple moving averages will try to catch up the rate during the trading day.
Hourly Chart
The recent bounces caused by fundamental events in both the US and Japan have been crashing one large scale pattern after another. However, the most dominant channel up pattern remains intact.
Daily chart
Since Monday, 69% of traders were shorting the USD/JPY. This indicates that most Dukascopy traders have profited from the decline of the currency exchange rate.
Meanwhile, trader set up orders were set to possibly push the rate even lower, as 53% of all orders were set to sell.
SWFX traders continue to profit from the decline of the USD/JPY for a third consecutive trading session.