- SWFX market sentiment is 63% bearish (-2%)
- 54% of pending orders in the 100-pip range are to BUY
- Strong resistance near 114.50 and 114.60
- Upcoming events: Fed Chair Yellen speaks, Trump tour in Asia
An active depreciation of the buck led fall of exchange rate on Monday. However, then the pair managed to quickly recover, using support at the 113.73 level as a springboard.
The report showed that the country's economy added 261K jobs in the reported period, missing forecasts for a 310K increase. The weak pay growth is likely to hamper inflation to reach 2% target.
Janet Yellen speaks
Economic calendar suggest that the upcoming speech that will be delivered by Janet Yellen in Washington should be viewed as event of high importance. However, in reality this type of events usually goes practically unnoticed in the markets. For this reason, it would be more valuable to follow Trump's meeting with South Korean President and his other Asian colleagues.
USD/JPY falls to 113.70 but quickly recovers
From technical point of view, the currency rate had all means to make a rebound near the 114.24 mark and make one more attempt to reach the monthly R1 at 114.84. However, changes in ten-year treasury rates led to depreciation of the buck and drove the pair out of an ascending channel. The downfall was not sharp, as the pair managed to quickly recover near the 113.73 mark. Although location of moving averages and pivot points indicate on recovery of the Dollar, there is a need to bear in mind potentially high volatility that could be caused by fundamental factors. Namely, traders might suddenly turn to safe haven Yen if Donald Trump continues his hot rhetoric during the visit to South Korea and other Asian countries.Hourly chart
Previous trading session signified another rebound from the bottom trend-line of a long-term rising wedge formation. Hence, in upcoming days the cable is likely to continue to move to the north at least until the clash with weekly and monthly R1.
Daily chart`
SWFX market sentiment remains bearish on Tuesday, as 63% of traders are holding short positions (-2%). Meanwhile, 51% of pending orders are now bullish, compared to 58% last Friday.
The bearish market sentiment of OANDA traders has increased, as 57% of open positions are short (+2%). Meanwhile, the number of open positions for Saxo Bank clients is now 50% long (-3%).