- The Swiss traders are 67% short
- Trader pending orders in the 100-pip range are 55% to buy
- No more data impacting the USD/JPY
The pair has surged back up above the 112.00 mark.The reason for the surge can be seen on the daily chart below.
Last week the Bureau of Labor Statistics released US PPI data that came out in line with expectations of 0.2%.
"The Producer Price Index for final demand increased 0.2 percent in September, as prices for final demand services rose 0.3 percent, and the index for final demand goods decreased 0.1 percent. The final demand index advanced 2.6 percent for the 12 months ended in September." the U.S. Bureau of Labor Statistics announced on Wednesday.
No more data impacting the rate
There are no more data releases this week that might impact the USD/JPY.Although, macroeconomic data release traders are still set to be active this week. Data is set to be published in the United Kingdom and Canada.
Namely, UK CPI will be published on Wednesday and UK's Retail Sales data will be out on Thursday. Both data releases are expected to cause a big impact on the strength of the GBP. The data releases will occur at 08:30 GMT on both days.
Meanwhile, note that the data release with the biggest impact will be on Friday. The Canadian statisticians will publish the Canadian CPI and Core Retail Sales at 12:30 GMT.
USD/JPY short term analysis
In regards to the near-term future, the US dollar will trade sideways due to the resistance of the 100-hour SMA and the support of the 55-hour SMA. Most likely, the currency pair will trade at the 111.80 level during the session.However, the 100– hour SMA and the pattern line could push the rate to pass through the support of the 55-hour SMA to trade at the 111.60 level on Tuesday.
Hourly Chart
Meanwhile, note that the rate's decline might be stopped by the lower trend line of a large scale ascending pattern near the 111.70 mark.
In addition, the 55-day SMA was providing resistance in the morning hours to the rate at 111.80. Moreover, the daily chart reveals that the 100-day simple moving average was located close by. Namely, the SMA was located at 111.30.
Daily chart
On Tuesday, 65% of trader open positions were short.
Meanwhile, trader set up orders were almost neutral, as 52% of all trader set up pending orders were set to sell.
It can be seen that trader remain short even as the currency exchange rate has surged.