- The Swiss traders are 61% bearish on the USD/JPY
- Trader pending orders in the 100-pip range are 55% to buy the pair
- The pair has reached the 113.40 mark
USD/JPY has resumed its surge and reached above the 113.40 level. It is expected to next face the resistance of the 113.60 level. If that resistance is passed, the 114.40 level should be reached.
Latest Fundamental Event
The Bureau of Labor Statistics released Non-Farm Employment Change data lower-than-expected of 155K compared with forecasted 198K. Note, that the Average Hourly Earnings and the Unemployment Rate were released at the same time with the Non-Farm Employment Change.
The Bureau of Labor Statistics commented, "Total nonfarm payroll employment increased by 155,000 in November, and the unemployment rate remained unchanged at 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in health care, in manufacturing, and in transportation and warehousing."
Busy week for fundamentals
Before watching any data release that usually impacts the Forex Markets, note that the Brexit fundamentals are overshadowing all data releases. Namely, data causes no reaction in the currency rates during this month.On Wednesday, the US Consumer Price Index change will be published at 13:30 GMT. The event is expected to cause around 20 pip reaction on the EUR/USD.
Note that on Wednesday the biggest move that can be caught will occur on the oil price benchmarks. Namely, at 15:30 GMT the US Crude Oil Inventories data release will cause a sudden move of more than one percent.
On Thursday, the attention will be taken by central bank rate announcements. Namely, at 08:30 GMT the Swiss National Bank will publish their rate and at 12:45 the ECB will publish their interest rate.
The last day of the week will have two notable data releases. At 09:00 GMT the European Manufacturing and Services PMI's created by Markit will be published.
Afterwards, the US Retail Sales data sets will be out at 13:30 GMT. The event might cause a 20 pip bounce.
All of the above mentioned data releases will be covered by Dukascopy Analytics. The events can be watched either on the bank's webinar platform or on our YouTube channel.
USD/JPY short term daily review
During Tuesday's trading session, the US Dollar was supported by the 200-hour SMA to help the rate to break the resistance level of the monthly pivot point at the 113.34 mark. During Wednesday's morning hours, the US Dollar was located between the monthly PP and the weekly R1 to trade at the 113.47 mark.In regards to the near-term future, the US Dollar will keep surging upwards to break the resistance of the weekly R1 at 113.62 to push the rate to trade at 113.80 level during the day.
On the other side, the US Dollar could depreciate against the Japanese Yen during today's US CPI data release at 13:30 GMT to trade at the 113.20 level.
Hourly Chart
On the daily chart it can be observed that the currency exchange rate's decline was stopped by the support of the 100-day simple moving average at the 112.20 level.
Meanwhile, note that the 55-day simple moving average at 113.00 has been influencing the currency exchange rate during the last couple of trading sessions.
Daily chart
The USD/JPY sentiment remains unchanged. Since last week 61% of traders were short. The sentiment has been short for more than a week.
Meanwhile, trader set up pending orders, stop losses, take profits and position open orders, since the middle of Tuesday's trading 55% of trader set up orders in the 100-pip range were set to buy the USD/JPY.