- SWFX market sentiment is 58% bearish (-1%)
- 60% of pending orders in the 100-pip range are to BUY the US Dollar
- Strong support near 113.00
- Upcoming events: UK Public Sector Net Borrowing, US Final GDP q/q, US Philly Fed Manufacturing Index, US Unemployment Claims
The US home sales rose more than anticipated in November to reach the highest level in 11 years, indicating that the property market growth started to regain momentum after procrastination for the most of the year.
The National Association of Realtors stated that the country's exciting home sales increased 5.6% to a seasonally adjusted yearly rate of 5.81M units due to lingering recovery of hurricanes-hurt areas. However, the market activity remained constrained by a shortage of available properties, which kept prices elevated.
US Final GDP
The only set of fundamentals in this session comes from the US and is to be released at 1330GMT, namely, the Final GDP for the third quarter of 2017, the Philly Fed Manufacturing Index and weekly Unemployment Claims.
USD/JPY ready to bounce off from weekly R1
Despite existence of a rising wedge pattern, the Dollar continued to actively appreciate against the Yen. However, it does not mean that the figure was broken, as it simply needs boundaries' readjustment. Once this is done it appears that the breaking point matches with the weekly R1 located at the 113.57 level.From this perspective, the pair should pull back to the opposite side of an ascending channel near 113.30. However, a release of information on the American Final GDP might result in further strengthening of the buck. In that case, the pair would need to test an alleged resistance zone located around the 113.70 mark.
Apart from that, it faces no notable barriers from northern side.
Hourly chart
Following a massive surge on Wednesday, it is likely that the pair spends this day in a relatively calm manner. The pair was testing the weekly R1 at 113.58 this morning and there is still some upside potential until the 133.08 mark.
However, it is unlikely that gains extend any further. Losses, on the other hand, should be limited by the 55-day SMA, the weekly and monthly PPs circa 112.80.
Daily chart
SWFX market sentiment is bearish, as 58% of open positons are short. Meanwhile, 62% of pending orders are to buy the US Dollar (+5%).
OANDA traders are bullish on the pair, as they are holding 52% long positions (-4%). Meanwhile, Saxo Bank clients have turned bearish with 56% short positions.