- SWFX market sentiment is 63% bearish
- 55% of pending orders in the 100-pip range are to BUY the US Dollar
- Nearest support is located near 113.35
- Upcoming events: US CPI m/m, US Core CPI m/m, FOMC Economic Projections and Statement, Federal Funds Rate, FOMC Press Conference, FOMC Member Brainard to speak
The Labour Department stated that the US job openings cooled unexpectedly in the month of October from a record-high registered previously.
According to the JOLTS survey, the number of jobs expecting to be filled dropped 181K to 6.00M, following an upwardly revised 6.18M in the prior month. Meanwhile, the number of hirings grew to 5.55M, with the most of increase coming from hotel and restaurants, the health care industry, financial services and manufacturing.
US Federal Funds Rate
The US Bureau of Labour Statistics will publish the country's CPI and Core CPI for the previous month at 1330GMT. In addition, various fundamentals from the Federal Reserve are scheduled for 1900GMT, namely, the FOMC Economic Projections and Statement, as well as the Federal Funds Rate. Its press conference is planned for 1930GMT.
USD/JPY exits from falling wedge pattern
During yesterday's trading session the currency exchange rate made two attempts to break to the bottom towards the 50% retracement level located at 113.00.However, as markets focused on tomorrow's Fed meeting, the pair failed to bypass even the 55-hour SMA that was backing up the lower trend-line of another rising wedge formation. And only in the early morning it managed to sneak below the 113.47 mark.
Accordingly, until release of information on the American PPI the pair is expected to continue moving in southern direction and trying to reach the bottom edge of a new junior descending channel that lies slightly above the major support zone located between the 113.11 and 113.00 marks.
Hourly chart
The two narrow red candles which were apparent during the first part of the week demonstrate that USD/JPY might be starting to form a new wave down. Moreover, it had already managed to push as low as the 133.13 mark early on Wednesday, but nevertheless failed to test the weekly PP located near 133.00.
By and large, the rate has been stranded between the weekly PP and R1 in the 133.00/114.05 area for the fourth consecutive session. This range is likely to hold during the most part of the day, but, given that there are several significant fundamentals during the day, this range could be breached either direction. The southern side is likewise reinforced by the 55-day SMA circa 112.90.
Daily chart
The SWFX sentiment has remained at the same level for the second consecutive day, as 63% of open positions are short. Meanwhile, 59% of pending orders are to buy the US Dollar (-1%).
OANDA traders are also bearish on the pair, with 55% of open positions being short (+1%). Saxo Bank clients are holding 52% short positions (-1%).