- The Swiss traders are 62% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 62% to buy
- Federal Reserve Rate at 19:00 GMT
On Thursday the USD/JPY was approaching the high levels of the volatility range that was achieved during the US Congressional election announcement. Namely, the rate traded near the 113.70 level.
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".
US Federal Reserve Announcement at 19:00 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 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 surge towards the 114.00 level breaking the resistance of the weekly R1 at the 113.81 mark. It is expected that the surge will be followed during the US Federal Funds Rate release at 19:00 GMT on Thursday.On the other hand, the weekly R1 at the 113.81 mark could resist the rate to push the US Dollar to depreciate to the 113.60 level during the trading session.
Hourly Chart
The daily chart reveals no additional information, as the rate clearly is set to test the resistance of the 113.80 level.
Daily chart
By the middle of Thursday's trading session 62% of traders were short on the USD/JPY. Previously, the sentiment was neutral.
In the meantime, 57% of all orders were set to buy the USD/JPY.
In general, it can be seen that traders have opened short positions in expectations of a retracement downwards after the recent surge. Meanwhile, the pending buy orders represent the stop losses and take profits of the short positions.