- The Swiss traders are 62% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 55% to sell
- US data will be published today
The rate has continued a surge that began after the currency exchange rate met with the lower trend line of a dominant ascending pattern. Next resistance for the USD/JPY was located at the 113.20 mark by the middle of Wednesday's trading.
Latest Fundamental Event
The Census Bureau released US Retail Sales data that came out better than expected of 0.8%, compare to forecasted 0.6%.
Advance estimates for US retail sales increased 0.8% over last month in October, higher than consensus expectations of a 0.5% pace of increase. Retail sales were downwardly revised to see a pace of decrease of 0.1% in September, the Commerce Department said in a statement Thursday.
Watch the release of the US Durable Goods Orders
On Wednesday, the US statisticians will publish the US Durable Goods Orders and Core Durable Goods Orders data sets at 13:30 GMT.In addition, at 15:30 GMT the US Crude Oil inventories data release will be published.
Meanwhile, note that the second notable fundamental data release day of the week will be Friday. At 13:30 GMT the Canadian CPI and Core Retail Sales data will be published.
All of these data releases can be watched live on the Dukascopy Webinar platform and the Dukascopy Webinars YouTube channel. Join ten minutes before the event to see the cover.
USD/JPY short term analysis
In regards to the near-term future, most likely, the US Dollar will be resisted by the monthly pivot point at the 112.96 mark to trade downwards at the 112.40 level during the trading session on Wednesday.On the other side, the rate could break the resistances of the 200-hour SMA and the monthly PP at 112.96 to trade near the weekly pivot point at the 113.00 level.
Hourly Chart
The lower trend line of the large scale ascending pattern strengthened the support of the weekly S1 at 112.30 level. The combination of these levels managed to force the rate into a rebound.
Meanwhile, note that on Wednesday the currency exchange rate was strengthened by the support of the 55-day simple moving averages, which was located at the 112.70 mark.
Daily chart
Last week traders were almost 70% short on the pair. On Wednesday, 62% of trader open positions were short.
In the meantime, trader set up orders in the 100 base point range are mostly set to sell. Namely, 55% of orders are set to sell.
Traders have closed their short positions during the last couple of trading sessions. However, they are ready to reopen them, as sell orders dominate the pending orders.