- SWFX market sentiment is 54% bearish
- 58% of pending orders in the 100-pip range are to SELL the Greenback
- Notable support near 110.40
- Empty first half of the week for fundamentals
The US Dollar has extended its massive losses against the Japanese Yen. During the first half of Monday's trading session the currency exchange rate had managed to fall below the 110.50 mark. However, the currency pair was about to meet with a strong support cluster, which is located from 110.42 to 110.05 levels.
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.
Empty start of the week
The economic calendar for the week in regards to the strength of the USD/JPY currency pair is empty until Thursday. Due to that reason traders are most likely going to concentrate on technical aspects of currency fluctuation analysis.
However, swing traders should tune in for various swing trades scheduled to be covered by the Dukascopy research team during the week.
USD/JPY falls to 110.50 level
Driven by its broad-based weakness against a basket of currencies, including the Yen, the US Dollar continues to approach a four-month descending channel with its lower boundary located near the 110.00 mark.The pair's attempt to edge higher on Friday was disrupted by the combined resistance of the monthly S1 and the 55-hour SMA circa 111.50. As a result, the Greenback fell even lower and thus had reached 110.60 by early today.
It is likely that the bearish pressure continues to affect negatively the US Dollar. A possible fall, however, should not be massive due to a notable support cluster being located nearby circa 110.20.
Meanwhile, it is unlikely that the 55-hour SMA is breached in this session, thus leaving the rate somewhere in the 110.50/111.00 area by Tuesday.
Hourly chart
By looking at the daily chart one sees that the pair 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 of six consecutive trading sessions might end at that level. Afterwards, a rebound and a formation of a new medium term pattern would occur.
Daily chart
The bearish SWFX market sentiment has slightly weakened today with 54% short positions (-4%). Meanwhile, 64% of pending orders are to buy the Greenback (+8%).
The market sentiment of OANDA traders remains bullish with 59% long positions (-1%), thus they have been able to increase long positions by 9% during the past three sessions. Saxo Bank clients are likewise bullish, as 53% of open positions are long (-5%).
Spreads (avg, pip) / Trading volume / Volatility