- The Swiss traders are 52% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 57% to buy
- US election increases volatility
The USD/JPY increased its volatility during the announcement of the US election results. Although the event was fundamental, technical levels were still working during and after the Election Day.
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 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 be supported by the 100-hour SMA to break the resistance of the 55-hour SMA at 113.27 to surge upwards towards the 113.40 level during Wednesday's trading session.On the other side, the 55-hour SMA could resist the currency exchange pair to decline the rate to trade near the monthly pivot point at 112.96 mark.
Hourly Chart
On the daily chart the latest action looks like a simple surge. The range of the daily chart is not bigger than some of the ones seen during the last couple of weeks.
Daily chart
Traders are almost neutral on the pair, as 53% of traders were short on the pair on Wednesday. Previously, during the previous two trading sessions 55% of traders were short on the USD/JPY.
In the meantime, traders set up pending trade orders were no longer neutral, as 55% of all orders were set to buy the USD/JPY.
Unlike on other USD pairs, the sentiment data does not indicate that traders have profited from the US elections. Although, some are prepared to sell the pair in the near future.