- SWFX market sentiment is 63% bearish
- 62% of pending orders in the 100-pip range are to SELL
- Strong resistance near 114.00
- Upcoming events: Japan's BOJ Summary of Opinions, Bank Lending y/y, Core Machinery Orders m/m, Current Account
The JOLTS report showed that demand for workers in the US remained solid, with 6.1M job openings registered in September.
The job opening rate, as well as pace of hiring were unchanged at 4% and 3.6%, respectively. Despite the recent hurricanes' fallout, levels were steady, indicating the resilient labour market. However, nearly 1.7M people were laid off or fired in September, compared with 1.5M a year ago.
Fundamentals from Japan
This economic sessions is likely to be calm for USD/JPY traders, as today's calendar includes only minor events from both the US and Japan. The US is to release its Crude Oil Inventories at 1530GMT, while the 10-y Bond Auction is to take place at 1801GMT.
Meanwhile, Japan is going to publish four sets of data at 2350GMT, namely, the BOJ Summary of Opinions, Bank Lending, Core Machinery Orders and Current Account.
USD/JPY slips in new channel down
As it was expected, different news coming from the United States and Asia created a downside momentum that allowed traders with bearish outlook to push the currency pair down to the 113.65 level. The further deprecation of the buck was stopped by a slope consisting from October 16 and October 31 minimums.An existence of this support barrier as well as President Trump's arrival to China suggests that the currency rate might resume the surge despite the pressure from 200-, 100- and 55-hour SMAs.
On the other hand, over the last two days the pair has formed a minor descending channel, which implies that the above moving averages should be strong enough to force the rate to make a rebound from the upper boundary of that pattern.
Hourly chart
USD/JPY has been trading near the lower boundary of a descending wedge during this week. In case the rate fails to edge higher within the following trading sessions, it is more likely that a breakout south is to occur.
The nearest support in this session is the monthly PP and the weekly S1 circa 113.25. Meanwhile, significant resistance cluster is set by the weekly and monthly R1s circa 114.75.
Daily chart`
SWFX market sentiment remains at the same level on Wednesday, as 63% of traders are holding short positions (unchanged from Tuesday). Meanwhile, 57% of pending orders are now bullish, compared to 51% yesterday.
The bearish market sentiment of OANDA traders has slightly weakened, as 56% of open positions are short (-1%). Meanwhile, the number of open positions for Saxo Bank clients is 53% long (+3%).