- The Swiss traders are 64% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are set to sell in 52% of cases
- US data releases have been moved to Thursday
The drop of the USD/JPY was stopped by the lower trend line of the most dominant, largest ascending channel pattern's support line. In general, a retracement upwards was occurring on Wednesday, which was set to meet with the resistance of various simple moving averages and pivot points.
Latest Fundamental Event
The Federal Reserve releases US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
The minutes said, "Almost all participants expressed the view that another increase in the target range for the federal funds rate was likely to be warranted fairly soon".
Macro traders wait for Canadian rate announcement
Note that data releases, which were previously scheduled to occur in the US on Wednesday have been moved to Thursday. The reason is the announced public holiday due to the funeral of ex-President Bush.Meanwhile, at 15:00 GMT the Bank of Canada will make an interest rate announcement. This event has caused the largest fluctuations in the forex markets during 2018. This will be the top event for the month for macroeconomic event traders.
At 13:15 GMT on Thursday the ADP Non-Farm Employment change will be published and covered by Dukascopy Analytics on the bank's webinar platform and YouTube channel.
Moreover, the weekly Crude Oil Inventories will be published at 16:00 GMT. This data release causes bounced in oil prices from half a dollar up to ninety cents.
The day will end with the head of the Federal Reserve testifying before the US Congress at 23:45 GMT.
Last but not least will be the Friday's monthly US and Canadian employment data release at 13:30 GMT. This event will also be covered by Dukascopy Analytics.
USD/JPY short term daily review
During Tuesday 's trading session, the large pattern line at 112.72 and the 61.80% Fibo stopped the rate from the depreciation to end the trading session at the 112.67 mark. During Wednesday's morning hours, the US Dollar was trading between the monthly pivot point and the weekly S1 at the 112.99 mark.In regards to the near-term future, most likely, the US Dollar will trade downside to pass through the most of the technical indicator support levels to stay near the 50.00% Fibonacci retracement level at the 112.16 mark.
However, the support levels of the technical indicators could push the rate to break the resistances of the 55-hour and the 200-hour SMA to trade near the 113.60.
Hourly Chart
On the daily chart it looks like the resistance trend line of the last half a year high levels has pushed the rate into a retest of the lower trend line of the dominant ascending pattern.
In addition, note that the support of the 55-day simple moving average together with the weekly S1 near the 113.00 level could not stop the USD/JPY from dropping.
Moreover, they began to provide resistance on Wednesday.
Daily chart
Traders remain short on the pair. By the middle of the day's trading 64% of open positions were short on USD/JPY on the Swiss Foreign Exchange.
Meanwhile, trader set up pending orders, stop losses, take profits and position open orders were neutral.
Traders have not taken profit from the decline, they remain short. In addition, note that they do not intend to start a massive buying or selling wave. The orders remain neutral.