- SWFX market sentiment is 59% bullish
- 65% of pending orders in a 100-pip range are bullish
- Significant resistance is located at 109.50
- Upcoming events: US PPI m/m, US Core PPI m/m, Japan's Revised Industrial Production m/m
The Labour Department released its JOLTS report for July, where the amount of job openings rose surprisingly to 6.17M, following a downwardly revised figure of 6.12M in June.
Data showed that slower job growth was temporary, while a new record high for the number of job openings indicated that demand for workers continued to be strong. Moreover, the labour market kept tightening due to a lack of skilled labour supply, though remained in a healthy growth state.
US PPI in focus
The only significant event for this trading session is the US Producer Price Index and Core Producer Price Index for the month of August at 1230GMT. Meanwhile, Japan is to publish its Revised Industrial Production at 0430GMT on Thursday.
USD/JPY confidently moves north
In result of the yesterday's advance, the currency exchange rate managed to cross practically all barriers on its way. As a result, the only two obstacles that could prevent the further path to the north, except for the upper trend-line of a former descending channel near 110.42, are the weekly R2 at 110.98 and the monthly R1 at 111.26. From this perspective, the Dollar is expected to continue to appreciate against the Yen. An aggregate of technical indicators supports this assumption, sending strong buy signals for the upcoming day. However, there is also a need to take into account that an average market sentiment remains 58% bearish. Moreover, in the middle of the day the above scenario might be altered, depending on the released US PPI data.Hourly chart
The strong two-day appreciation of USD/JPY was halted at the 110.20 mark – a level which had already worked effectively at stopping the pair two weeks earlier. As a result, the rate reversed to the downside, thus approaching the monthly PP at 109.77. Meanwhile, the upside is guarded by the 55-day SMA and the weekly R2 near 110.90.
Daily chart
SWFX market sentiment has diminished considerably on Wednesday, as 59% of traders are holding open positions (-10%). Meanwhile, 59% of pending orders are still to buy the US Dollar (+1%).
OANDA traders are likewise reducing their bullish perspectives on the pair, with 54% of its clients having long positions (-9%). Similar viewpoint is held by Saxo Bank clients with 54% long positions (-4%).