- SWFX market sentiment is 70% bullish
- 77% of pending orders in a 100-pip range to sell
- Gains could be capped near 110.50
- Upcoming Events: US Core Retail Sales m/m, US Empire State Manufacturing Index, US Import Prices m/m
The report on the US worker productivity, which revealed a higher-than-anticipated increase in the Q2, resulted in a jump of the USD/JPY currency pair. The Greenback appreciated against the Yen by 0.07% to be seen trading above the 109.69 level after data were published.
The Labour Department showed that the nonfarm productivity rose at a 0.9% annual growth pace in the June quarter, above expectations for a 0.7% rise. Experts suggested that an upward move was supported by higher volume of hours worked, but the overall trend was seen weak, raising doubts that the robust US economic growth nearing 3% year-over-year would be achieved even despite Trump's tax cuts, regulatory rollbacks and higher infrastructure spending.
Busy economic calendar
The economic calendar for this session is full of possible market shakers from the United States. It is to release data on Retail Sales, Core Retail Sales and Import Prices for the month of July and the Empire State Manufacturing Index at 1230GMT, along with additional minor data later in the evening.
USD/JPY set for possible reversal
During the last trading session, the US Dollar managed to recover some losses against the Yen, as political tensions in the Korean peninsula eased. The rate surpassed all three SMAs and the weekly PP just to reach the weekly R1 at 110.51. In addition, the pair managed to breach two descending channels. The weekly R1 is likely to be a turning point, as technical indicators seek to retrace from the current levels. In case strong fundamental data do not put an upward pressure on the Dollar, the American currency may range between the weekly R1 and PP in this session. Possible downside limit could be either the 200-hour SMA or the upper boundary of the senior channel down.Hourly chart
The USD/JPY currency pair has been driven by strong upside momentum on Tuesday, as it managed to increase by 82 pips on the morning session. The range between the weekly PP and R1 is expected to bound the pair, thus possibly leaving the rate near the 110.20 mark by this evening.
Daily chart
SWFX market sentiment is bullish on Tuesday, as the number of open positions is 70% long (+5%). Furthermore, 66% of pending orders are to buy the US Dollar (unchanged from Monday).
OANDA clients are likewise bullish on the pair, as 67% of all open positions are long (1%). Similar viewpoint is held by Saxo Bank clients with 59% long positions (-4 %).