- SWFX market sentiment is 68% bullish
- 60% of pending orders in the 100-pip range are set to SELL
- Pair reveals ascending pattern
- ISM Manufacturing PMI
The USD/JPY currency pair has clearly changed its direction and reached above the 110.00 mark. Moreover, the pair has revealed a new medium term ascending pattern.
The job growth in the US increased in January, while wages surged further, recording the strongest annual growth in more than eight years, fuelling expectations that consumer inflation would push higher in 2018, as the job market reaches full employment.
The Labour Department stated that non-farm payrolls rose 200K positions last month. Meanwhile, the jobless rate rmained at the lowest level in 17 years of 4.1%. Strong data underscored robust growth momentum, encouraging the Fed to be more agressive in hiking interest rates in 2018.
Another ISM PMI
This Monday will be one of the rare Mondays when there is a notable data release set to occur from the US Dollar's side. Moreover, it actually might cause fluctuations. Namely, the ISM Non-Manufacturing PMI is set to be published at 15:00 GMT.
The release will be covered on the bank's webinar platform live. Join by clicking on the notification on the JForex platform or find the webinars in the TV section.
USD/JPY flashes mixed signals
The US Dollar managed to continue its strong upside movement during the first part of Friday's trading session. Better-than-expected US employment data released at 1330GMT strengthened the Greenback by 40 pips within the first five minutes after the release, thus allowing it to test the 110.50 mark.The pair's subsequent movement was a decline from this eight-day high towards the 55-hour SMA and the weekly PP at 109.70.
Technical indicators show mixed signals, thus the US Dollar is likely to remain stable in this session. In case the monthly PP does not hold, the upside target should be the weekly R1 at 111.00.
On the other hand, the daily low is expected to be the combined support of the 100– and 200-hour SMAs circa 109.30.
Hourly chart
A new development has taken place in regards to analysing the daily chart.
Dukascopy analysts have spotted a long term descending channel pattern, which previously was not marked.
The recent rebound might be the first move in junior ascending pattern in the borders of the just discovered long term channel down pattern.
Daily chart
SWFX traders are on the long side, as 67% of open positions were bullish during the morning hours. Meanwhile, 55% of pending orders are to buy the Greenback.
The market sentiment of OANDA traders remains bullish with 67% long positions. Meanwhile, Saxo Bank clients are likewise bullish, as 59% (+1%) of open positions are long
Spreads (avg, pip) / Trading volume / Volatility