Latest Fundamental Event Report
Institute for Supply Management released the US Non-Manufacturing PMI data, which came out worse-than-expected of 53.7 compared with the forecast of 55.5.
Anthony Nieves, Chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee commented: "The NMI registered 53.7 percent, which is 1.4 percentage points lower than the June reading of 55.1 percent. This represents continued growth in the non-manufacturing sector, at a slower rate. This is the index's lowest reading since August 2016, when it registered 51.8 percent. Respondents indicated ongoing concerns related to tariffs and employment resources. Comments remained mixed about business conditions and the overall economy."
Economica calendar
No significant economic data releases are expected during this week.
USD/JPY short-term daily review
On Monday, the USD/JPY currency pair reversed north form the upper boundary of the long-term descending channel at 105.68. During today's morning, the pair was resting the resistance formed by the monthly S2 and the 55-hour SMA at 106.54.If the given resistance holds, it is likely, that the exchange rate could trade sideways between the given resistance and the lower channel line in the short run. It is unlikely, that a breakout south could occur, as the rate is supported by the weekly S1 at 105.64.
It is unlikely, that some upside potential could prevail in the market, as the pair is pressured by the Fibonacci 23.60% retracement and the 100-hour SMA, located at 107.02 and 107.31 respectively.
Hourly Chart
On the daily candle chart, the rate has bounced off in a sharp move off the upper trend lines of dominant patterns. The move was expected to occur a lot slower.
Moreover, note that the junior pattern's support was being tested. If it fails, the decline will continue.
Daily chart
On Tuesday, 73% of total open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up pending orders were bullish, as in the 100-pip range 61% of pending orders were set to buy and 39% were to sell.