- SWFX market sentiment is 54% bullish
- 60% of pending orders in the 100-pip range are to BUY the Greenback
- Notable support near 111.00
- US Building Permits and US Unemployment Claims
On Thursday morning the surge of the US Dollar against the Japanese Yen continue to surge. However, the situation seemed quite unclear in regards to the medium term future, as the currency exchange rate had not touched the lower trend line of the dominant channel down pattern.
The Greenback rose temporary against the Japanese Yen, following mixed US economic date on Friday. The USD/JPY currency pair added 28 base points or 0.34% to reach another starting point for a decline.
The US retail sales rose in December, as consumers bought more goods and the previous month's figures were revised up, indicating that the country's economy finished 2017 with solid momentum. The Commerce Department stated that retail sales increased 0.4% in December, following an upwardly revised 0.9% gain previously.
Minor US data sets
After a quiet first half of the week on Thursday data, which will affect the financial markets through the US Dollar, will be released. Namely, at 13:30 GMT the US Building Permits, Housing Starts and Unemployment Claims data will be published by the US government.
In addition the Philly Fed Manufacturing Index will be released at the same time.
USD/JPY faces strong resistance
The US Dollar held strong against the Yen on Wednesday, thus ending the previous session with an 85-pip gain.The pair was stranded between the 55– and 100-hour SMAs for most of the day. However, a strong hourly surge later in the evening allowed to dash through the latter and test a resistance cluster formed by the monthly S1 and the 200-hour SMA near 111.50.
It is likely that bulls are reluctant to push past this area during the following session. Meanwhile, the southern side is guarded by the shorter-term moving averages circa 110.85 that are expected to hold firm, at least during the first part of the day.
Thus, the Greenback might enter a brief period of consolidation which could be disrupted by US fundamentals released mid-session. In case of a strong fall, the daily low should be 110.30.
Hourly chart
By looking at the daily chart one sees that the pair still is approaching the support line of a dominant long term channel pattern. Namely, the support is located just below the 110.00 mark. Due to that reason it is expected that this decline eventually will reach that level. Afterwards, a rebound and a formation of a new medium term pattern would occur.
Daily chart
On Wednesday morning SWFX traders were more on the long side, as 54% of open positions were bullish. Meanwhile, 64% of pending orders are to buy the Greenback (-1%).
The market sentiment of OANDA traders remains bullish with 67% long positions (+5%). Meanwhile, Saxo Bank clients are likewise bullish, as 57% (+3%) of open positions are long
Spreads (avg, pip) / Trading volume / Volatility