- SWFX market sentiment is 57% bullish
- 59% of pending orders in a 100-pip range to buy
- Gains could be capped near 110.49
- Upcoming Events: US Average Hourly Earnings m/m, US Non-Farm Employment Change, US Unemployment Rate, US ISM Manufacturing PMI, US Revised UoM Consumer Sentiment
The National Association of Realtors revealed that pending home sales in the United States fell 0.8% over the month of July, as the property market kept facing hurdles form a limited supply of available houses, which pushed prices up.
The report suggested that sales would not break out in the coming months, as inventories are unlikely to improve significantly, while higher property prices are set to continue outpacing wage growth further, causing more strains on first-time buyers.
US in focus
The economic calendar on Friday includes various important data releases from the Unites States. The day will start with the US Bureau of Labor Statistics publishing monthly Average Hourly Earnings, US Non-Farm Employment Change and Unemployment Rate at 1230GMT. Subsequently, the US Institute for Supply Management is to publish Manufacturing PMI and the University of Michigan – Revised Consumer Sentiment at 1400GMT.
USD/JPY stops at 109.92
The way the currency rate moved yesterday completely matched with expectations. Due to absence of any additional stimulus, the buck continued to lose value against the Yen up until the weekly R1 at 109.92. The pair made a few attempts to break to the bottom but failed. For today, projection remains approximately the same. The pair is not expected to resume a successful plunge, as the southern side remains reliably protected by the 100- and 200-hour SMAs as well as by the weekly and monthly PP. On the other hand, a release of the US employment data today at 12:30 GMT might alter this scenario and, in contrast, help the buck to surge towards the weekly R3 at 111.13.Hourly chart
On Thursday, USD/JPY failed to breach the weekly R1 at 109.93 and therefore remained stranded between this level and the weekly R2 at 110.49. It seems that the pair has changed its sentiment in this session, as it is gradually pushing towards the latter. In case bears fail to take the upper hand, this range is likely to hold for the remaining trading hours.
Daily chart
SWFX market sentiment is gradually decreasing in strength but still remains bullish, as 57% of traders are holding open positions (-6%). Furthermore, 51% of pending orders are to buy the US Dollar.
OANDA is strongly bullish on the pair, with 66% of its clients having long positions (-1%). Similar viewpoint is held by Saxo Bank clients with 64% long positions (+1%).