- The Swiss traders are 60% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 53% to sell
- US Employment will impact the rate on Friday
USD/JPY continues to surge on Wednesday. Moreover, the next resistance was only located at the 113.56, indicating that the surge will continue.
Latest Fundamental Event
Last Friday, the US 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".
USD/JPY impacting data only on Friday
There will be no data releases impacting the USD/JPY until Friday. On that day the US Employment data sets will be published.
Namely, at 12:30 GMT the US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate will be released. The data will be covered by Dukascopy Analytics. The event can be watched on the bank's webinar platform and on YouTube.
USD/JPY short term analysis
In regards to the near-term future, the US Dollar will stay in the range between the weekly R1 at 112.73 mark and the weekly R2 at 113.56 mark. Most likely, the rate will move upwards to bounce off the resistance of the weekly R2 at 113.56.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.
On the other hand, the US Dollar could depreciate against the Japanese Yen during today's fundamental news which could force the rate to trade near the supports of the weekly R1 at 112.73 and the 61.80% Fibonacci retracement level.
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
During the recent surge traders have opened short positions and closed long positions by taking profit and starting to short the pair. Namely, 59% of trader set up orders were long on Wednesday.
Meanwhile, traders have set up various pending trade orders. The orders were almost perfectly balanced, as 51% of orders were to buy while 49% were set up to sell on Wednesday.
In general, the retail sector is shorting the USD/JPY without preparing to buy or sell it in the near future.