- SWFX market sentiment is 67% bullish
- 62% of pending orders in a 100-pip range to buy
- 57% of traders are bearish on the Yen
- Upcoming Events: No-news day
The US Dollar is continuing to lose value against the Japanese Yen simultaneously in two descending channels. Today the pair is expected to try to break through the monthly S1 at 108.82 for the second time and, thus, reach the bottom line of the senior formation.
The Labour Department revealed that the number of Americans filing for unemployment benefits fell to the lowest level in six months last week.
The report showed the initial jobless claims dropped to 232K in the week ended August 12, down from the prior week's 244K.
Data provided a good sign for the Federal Reserve as the further tightening in the labour market could encourage the US economic growth.
Another silent Monday
Another Monday is expected to pass quietly, as there are no macroeconomic data releases scheduled for today that might affect currencies from both sides of the Pacific.
USD/JPY rebounds from monthly S1
As it was expected, the currency exchange rate reached and bounced off from the monthly S1 located at the 108.82 level. In result of this action, the junior short-term channel has been broken.Unfortunately for the buck, the further surge did not follow and it is not expected to resume today as well, as the road upstairs is obstructed by multiple barriers, such as the 55-, 100- and 200-hour SMAs as well as the updated weekly PP at 109.59.
For this reason, the pair is expected to try to break through the above monthly S1 one more time and, thus, finally reach the bottom support line of a larger scale descending channel.
Hourly chart
The first hours of the new trading week showed that the currency pair has successfully broke through the bottom trend-line of an active formation. The only barriers that can stop the subsequent fall is the monthly S1 located at the 108.82 level. If a rebound occurs, the currency rate will continue to move within a medium-term descending channel. If not, we might get a confirmation of a new general downtrend.
Daily chart
SWFX market sentiment is bullish on Thursday, as the number of open positions is 67% long. Furthermore, 55% of pending orders are to buy the US Dollar.
OANDA clients are likewise bullish on the pair, as 64% of all open positions are long. Similar viewpoint is held by Saxo Bank clients with 65% long positions.