- SWFX market sentiment is 64% bullish
- 52% of pending orders in a 100-pip range to sell
- Gains could be capped near 110.50
- Upcoming Events: US Unemployment Claims, Philly Fed Manufacturing Index, US Capacity Utilisation Rate, US Industrial Production, FOMC Member Kaplan speaks
The Greenback extended losses against the Yen, as the US Building Permits report disappointed market expectations. The USD/JPY dropped by 5 base points to 110.77 mark just after the report and continued to gain advantages from the weaker US Dollar to finish the session in 109.99 area, following the FOMC meeting minutes release.
The Commerce Department revealed that the US Building Permits fell 4.1% to 1.22M units in July, suggesting the least contribution to the country's economic expansion anytime soon. Meanwhile, the FOMC minutes release showed that the Fed policymakers were split over the pace of interest rate increases as uncertainties over the inflation growth remained on the table.
US in focus
The economic calendar in this session is allocated solely to the United States. It is set to release weekly unemployment claims and Philadelphia Fed Business Outlook Survey at 1230GMT, as well as Capacity Utilisation Rate and monthly Industrial Production at 1315GMT. The session will end with the President of the Federal Reserve Bank of Dallas Robert Kaplan speaking about the Texas economy and monetary policy at the Lubbock Chamber of Commerce at 1630GMT.
USD/JPY falls through SMAs
After reaching the 111.00 mark early on Wednesday, the US Dollar plunged for the remaining session. As a result, the rate breached the weekly R1 and all three SMAs and reached the 109.60 area this morning. The above fall set trend indicators in the strongly bearish territory, demonstrating that further momentum downwards may still occur. The failure to move above the 200-hour SMA should work as a confirmation that the rate is set to fall. Nevertheless, this movement south has allayed slightly near the weekly PP. It is therefore expected that the rate remains above the given line and might even try to return near the weekly R1.Hourly chart
USD/JPY closed in the red on Thursday and seems to have resumed its downward momentum in this session, as well. Currently, the rate is located between the weekly R1 and P1 at 110.51 and 109.64, respectively. The given rage is expected to hold today. However, technical indicators suggest that the US Dollar should push higher against the Yen in the intermediate-term.
Daily chart
SWFX market sentiment is bullish on Thursday, as the number of open positions is 64% long (-5%). Furthermore, 54% of pending orders are to buy the US Dollar (-3%).
OANDA clients are likewise bullish on the pair, as 64% of all open positions are long (+2%). Similar viewpoint is held by Saxo Bank clients with 61% long positions (unchanged from Wednesday).