Economic Calendar
On Thursday, the US Retail Sales data will reveal whether total sales of consumer goods hae continued to increase. Note that higher retail sales might be due to higher prices not higher amount of goods sold.
USD/JPY hourly chart analysis
A potential extension of the prior recovery is set to face the 147.90/148.20 zone. Higher above, note the 148.50/148.85 range and the 149.00 level. Both of these could stop, or even reverse the pair, before it reaches the 150.00 mark.In the case of a decline, the rate would have to first pass below the 146.00/146.50 range and the 200-hour simple moving average. If these levels fail, the pair would be set to decline to the 145.00 level and the weekly simple pivot point at 145.40.
Hourly Chart
USD/JPY daily candle chart analysis
Prior analysis: "In general, the background is clear - Bank of Japan is tightening, the Federal Reserve is forced to ease policy. The USD/JPY is heading down and is set to continue to do so. It appears that prior high levels are providing short term support to the rate.In the meantime, the already steep decline has turned vertical. Due to this reason it is likely that one of the support ranges will force the pair into a consolidation by either fluctuating sideways or retracing back up."
Most recently, the pair had consolidated by moving back up.
Read More: Technical Analysis
Traders are long
On Wednesday, Dukascopy traders positions were bullish, as open position volume was 59% long.
Meanwhile, pending orders in the 100-point range around the rate were 74% to buy.
On Monday, traders were 64% long and orders were 55% to buy.
Meanwhile, pending orders in the 100-point range around the rate were 74% to buy.
On Monday, traders were 64% long and orders were 55% to buy.