- SWFX market sentiment is 51% bullish
- 52% of pending orders in the 100-pip are set to sell
- Empty calendar for US macroeconomic data traders
The surge of the US Dollar against the Japanese Yen continued on Tuesday, as a new high level was reached. Moreover, the previous support levels were still dictating the rules of the surge.
The Bureau of Economic Analysis released quarterly Gross Domestic Product data that came out lower-than-expected of 2.0%, and was also lower than the previous period.
According to Mario Blascak, the European Chief Analyst: "The largest positive contributions to GDP stem from nonresidential fixed investment, personal consumption expenditures, and exports. The biggest drag in PCE, exports, state and local government spending, federal government spending and a downturn in residential fixed investment. "
Empty calendar for US Dollar macroeconomics
On Monday there was minor data release, which did not affect the financial markets after all. Namely, the ISM Manufacturing PMI was released at 14:00 GMT.
Besides that data release, the economic calendars are empty in regards to the US Dollar until Thursday. On Thursday, the ISM Non-Manufacturing PMI and the ADP Non-Farm Employment Change might influence the USD/JPY through the strength of the US Dollar.
ADP data will be out at 12:15 GMT. ISM data will be published at 14:00 GMT. Both data releases will be covered by Dukascopy Analytics on the bank's live webinar. They will begin 10 minutes before the data is released, respectively, 12:05 GMT and 13:50 GMT.
USD/JPY continues its surge
There are no notable updates to the hourly chart of the USD/JPY. Namely, the currency exchange rate continues higher in the narrow ranged junior ascending pattern.The patterns lower trend line is still being supported by the 55-hour simple moving average, which on Tuesday was located at the 110.80 mark. It was still surging higher and was still set to support the lower trend line of the pattern.
The rate was set to target next the weekly R1, which was located near the 111.30 mark. Afterwards, the monthly R1 near 111.50 would be aimed at.
Hourly Chart
The additional information that the daily chart provides is that the currency exchange rate has the support of the 200-day simple moving average near the 110.20 cluster.
Moreover, the 55-day SMA was far below the rate, but steadily approaching near the 109.70 mark.
Daily chart
On Tuesday, as there was a slight decline of the USD/JPY rate some Swiss traders took profits. Namely, 51% of open positions were long, compared to the previous 54%.
However, after last week being set in 51% to 55% of all cases to buy. Pending orders on Monday were neutral, and on Tuesday they were already 52% short.
The latest developments of Tuesday clearly state. Last long short term positions have been closed. Meanwhile, some have set up sell orders to close their longs and open short positions in case the ascending pattern's support together with the 55-hour SMA fail to provide support.
OANDA traders remain bullish with 55% of open positions going long on the USD/JPY pair today.
Meanwhile, Saxo Bank traders are still neutral, as 51% of open Saxo positions are long.
Spreads (avg, pip) / Trading volume / Volatility