- The Swiss traders are 55% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are neutral
- US data sets will impact the rate this week
The USD/JPY has once more bounced off the lower trend line of a dominant ascending pattern. If it passes the resistance of 112.70, the 113.00 mark will be aimed at next.
Although there haven't been data releases impacting the USD/JPY, on Friday the Canadian CPI and Retail Sales caused a massive reaction in the financial markets.
The US Dollar appreciated against the Canadian Dollar, following the CAD CPI and Core Retail Sales data release on Friday at 12:30 GMT. The USD/CAD exchange currency rate gained 69 pips or 0.53% during a minute, right after the release. The US Dollar continued trading at the 1.3087 area.
The Statistics Canada released CAD CPI data that came out lower-than-expected of negative 0.4% compared with forecasted negative 0.1%. Moreover, CAD Retail Sales data came out together with the CAD CPI data release with the data lower-than-expected of negative 0.4% compared with the forecasted 0.1%.
Two US data releases this week
There are a couple of American data releases this week that might impact the USD/JPY this week.First will be the US Durable Goods Orders and Core Durable Goods Orders data sets on Thursday at 12:30 GMT.
Second, although more important, will be the US Advance GDP data release on Friday also at 12:30 GMT.
Both data releases will be covered by Dukascopy Analytics on the bank's live webinar platform. Join the webinars at 12:20 GMT to see the live analysis of the sentiment, technical charts and historical data.
USD/JPY short term analysis
In regards to the near-term future, most likely, the US Dollar will trade sideways to stay at 112.40 level due to the resistance of the monthly PP at 112.60 mark and the support of the 200-hour SMA at 112.32 mark on Wednesday.Hourly Chart
If one observes the daily chart, it can be seen that the lower trend line of the most dominant ascending pattern forced the pair into a rebound.
Due to that reason it is expected that the USD/JPY will continue to surge in the pattern. Although, a full confirmation of the rise of the pair will occur, as the resistance levels near 112.60 are clearly passed.
Daily chart
By the middle of Wednesday's trading SWFX traders were 55% short in regards to the USD/JPY. Previously, on Tuesday, 50% of Dukascopy traders were neutral.
Meanwhile, trader set up orders were almost neutral, as 52% of all trader set up pending orders were set to sell.
It seems that trades are expecting a retracement downwards on the USD/JPY charts in the aftermath of the recent surge.