- SWFX market sentiment is 67% bullish
- Pending orders in the 100-pip range are 56% to BUY
- Only FOMC speeches today
A bullish breakout of the 55-, 100- and 200-hour SMAs could point to further upside potential in this session.
The Census Bureau released the Building Permits data that came out slightly better-than-expected and instead of the forecast of 1.33M, the residential building permits grew by 1.35M in the period of March.
Building Permits rose by 2.5% annually, reaching the 1.354M growth pace, thus signaling how much of a construction is in the process. Moreover, single-family house building has retained close to the utmost levels ever since the recession began.
No important fundamentals today
The only fundamentals scheduled for today are speeches by two FOMC members. The President of the Federal Bank of New York William Dudley is due to speak about the economic outlook and monetary policy at 1915GMT, while the Federal Reserve Governor Randal Quarles is due to speak at the Bretton Woods Committee Annual Meeting at 2015GMT.
USD/JPY breaches strong resistance
Tuesday was rather uneventful for the USD/JPY exchange rate, as it spend the majority of the session slightly below the 100– and 200-hour SMAs. The US Dollar eventually gathered enough momentum to dash through this resistance cluster early today. As a result, it was located near the boundaries of two channels circa 107.40.From theoretical point of view, the rate should reverse near this area. However, it is more likely that the rate continues pushing higher, given its ability to surpass the comparatively strong resistance cluster near 107.20.
The nearest northern barrier is set the monthly R1 at 107.50, while a more probable upside target for today is the upward-sloping trend-line at 107.80.
Hourly Chart
It is still assumed that the patterns, which can be observed now, are too small and are only a part of a larger trend, which is still in the formation. >
Watch the daily chart in an order to try and spot the moment, when the new medium term pattern reveals itself.
Daily chart
SWFX traders are still on the long side, as 67% of open positions remained bullish during the morning hours. Trader set up orders are likewise bullish with 57% of pending orders being to buy the Greenback.
Meanwhile, the market sentiment of OANDA traders remains strongly bullish with 68% long positions. In addition, Saxo bank traders are 57% long on this pair.
Spreads (avg, pip) / Trading volume / Volatility