- The Swiss traders are 52% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 56% to sell
- CB Consumer Confidence at 14:00 GMT
The pair has made an unexpected turn, as the US Dollar is gaining against all other currencies. Namely, the pair has broken through all technical levels and reached the 113.00 level.
Latest Fundamental Event
The Bureau of Economic Analysis released US Advance GDP data that came out better than expected of 3.5%, compare to forecasted 3.3%.
The Bureau of Economic Analysis noted: "The deceleration in real GDP growth in the third quarter reflected a downturn in exports and a deceleration in non-residential fixed investment. Imports increased in the third quarter after decreasing in the second. These movements were partly offset by an upturn in private inventory investment".
Minor impact by CB Consumer Confidence survey
On Tuesday, the US CB Consumer Confidence data will be published at 14:00 GMT. It shown on many economic calendars as a high impact data release. However, historically the data release has caused no notable impact on the currency markets,
Although, due to due diligence the data release will be covered by Dukascopy Analytics. The cover webinar and YouTube stream will begin at 13:50 GMT.
USD/JPY short term analysis
On Tuesday morning, the US Dollar broke the resistances of the three technical indicators to trade above the weekly R1 at the 112.83 mark.In regards to the near-term future, most likely, the US Dollar will move upside towards the weekly R2 at 113.56 due to the support of the weekly R2 at 112.73 and the support of the 61.80% Fibo at 112.72.
Besides, none of the technical indicators and official fundamentals could prevent the currency exchange pair from the surge on Tuesday.
Hourly Chart
Note that the 100-day SMA at 111.50 was one of the technical reasons for the recent rebound.
Moreover, the 55-day simple moving average was located at the 112.00 level. It might impact the rate's movement in the short term.
Daily chart
On Tuesday, 53% of trader open positions were short in regards to the USD/JPY. Previously, in Monday, 55% of retail traders on the Swiss Foreign Exchange were shorting the USD/JPY.
Meanwhile, trader set up orders were slightly bearish, as 53% of all trader set up pending orders were set to sell.
In general, traders are still shorting the USD/JPY and ignoring the recent surge upwards. However, additional selling by the retail sector is unlikely, as the pending orders are almost balanced.