- The Swiss traders are 67% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 51% to sell
- No more relevant data releases for USD/JPY
USD/JPY remains in the previous day's trading range after a failed attempt to pass resistance a level at 113.24. Although, the surge was expected to resume, as the currency rate had found additional support in hourly simple moving averages by the middle of Thursday's trading session near the 112.80 mark.
Latest Fundamental Event
Last week, 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.
No more data releases for USD/JPY this week
There are no mentioning worth data releases scheduled for Thursday. However, there is still a data release to wait for this week.Note that on Friday at 13:30 GMT the Canadian CPI and Core Retail Sales data will be published.
The data release 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
The rate is expected to pass the resistance of the 113.00 due to the technical support of the 55 and 100-hour simple moving averages.Although, note that the surge is set to meet with additional technical resistance near 113.20. If that level gets passed, the currency pair should jump to the 113.80 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 average, which was located at the 112.70 mark. That support is expected to move higher and push the rate upwards in the near future.
Daily chart
On Wednesday, 62% of trader open positions were short. By the middle of Thursday's trading 67% of Swiss Foreign Exchange open USD/JPY positions were short.
In the meantime, trader set up orders in the 100 base point range are neutral.
The previously described possibility of traders reopening their short positions has become reality, as trader pending orders have become neutral while short position to long position proportion has increased.