- The Swiss traders are 55% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 57% to buy
- US elections on Tuesday overshadow all fundamentals
The USD/JPY currency rate is continuing a surge in the borders of an ascending pattern. It faces no resistance as high as the 113.80 level. Although, note that the US elections on Tuesday will dictate the strength of the US Dollar.
Latest Fundamental Event
The Bureau of Labor Statistics released US Unemployment Rate that came out in line with expectations of 3.7%. The Non-Farm Employment Change together with the Average Hourly Earnings m/m data release came out also at 12:30 GMT.
The Bureau of Labor Statistics noted: "Total nonfarm payroll employment rose by 250,000 in October, and the unemployment rate was unchanged at 3.7 percent. Job gains occurred in health care, in manufacturing, in construction, and in transportation and warehousing".
No notable data releases for USD/JPY this week
All of this week's events, which are worth mentioning, are described below
On Tuesday, the US Congressional Elections are taking place. They will impact all of the financial markets through the US Dollar.
On Wednesday, some traders will speculate on the publication of the weekly Crude Oil Inventories at 15:30 GMT. The event will be covered on a live webinar by Dukascopy Analytics.
In addition, on the same day the New Zealand's central bank will announce their Official Cash Rate at 20:00 GMT
On Thursday, the US Federal Reserve's Federal Open Markets Committee will publish their statement and announce the Federal Funds Rate at 19:00 GMT. The event will also be covered on a live webinar by Dukascopy Analytics.
On Friday, at 09:30 GMT the UK GDP and Manufacturing Production data sets will be published. Afterwards, at 13:30 GMT US Producers Price Index will be out. Both events will be covered by Dukascopy Analytics.
USD/JPY short term analysis
In regards to the near-term future, most likely, the US Dollar will trade towards the 113.40 level during the day. None of the technical indicators could prevent the rate from the surge. Besides, the 55-hour and the 100-hour SMAs will try to catch up the rate during the trading session to give additional support for the surge.On the other side, the rate could trade towards the bottom boundary of the ascending medium channel at 113.10 if the US Dollar will depreciate during the day.
Hourly Chart
The daily chart's dominant ascending pattern has been adjusted. Although, judging by the previous usefulness of it, it is better not to use its trend lines for guidance.
Daily chart
55% of Swiss Foreign Exchange short term oriented traders are shorting the USD/JPY.
Meanwhile, traders have set up various pending trade orders. Namely, 54.56% of trader set up orders are set to buy.
In general, traders remain short on the pair. Although, they have set up take profits and stop losses for their positions proportionately to the open positions.