- SWFX market sentiment is 59% bullish
- 58% of pending orders in a 100-pip range are bullish
- Significant resistance is located at 110.98
- Upcoming events: US CPI m/m, US Core CPI m/m, US Unemployment Claims
The Labour Department revealed that the US producer prices accelerated growth at the strongest pace in four months amid an increase in gasoline prices.
The report showed that the country's PPI for final demand rose 0.2% in August, slightly below expectations for a 0.3% gain. Wednesday's data were not quite as broad-based or strong as the Fed would like to consider to support an increase in core consumer prices to the Central Banks 2% target.
US releases monthly CPI at 1230GMT
Thursday's trading session is full of fundamental releases for almost all majors and the US Dollar is not an exception. Its Bureau of Labor Statistics is to publish the Consumer Price Index (CPI) and the Core CPI for the month of August, while the Department of Labor is scheduled to release the weekly Unemployment Claims at 1230GMT.
USD/JPY fails to break above 110.68
In line with expectations, the Dollar continued to advance against the Yen in a junior ascending channel, successfully crossing the upper boundary of a formed dominant formation. However, an effect from release of data on the US PPI was not as strong, as with other currency pairs. Namely, the pair made two attempts to climb above the 110.68 level but failed. Due to pressure from the 55-hour SMA, which is moving along the pattern, the pair is likely to make one more attempt to reach the weekly R2 at 110.98. At the moment, the only factor that could push the pair through this resistance, which is additionally strengthened by the monthly R1 at 111.26, is a release of data on the US CPI and Core Retail Sale. Otherwise, these technical indicators will force the rate to make a rebound.Hourly chart
USD/JPY remained between the 55-day SMA and the monthly PP on Wednesday, and it seems that the same situation might repeat in this session, as well. In general, the 111.00 area is guarded by a strong resistance cluster, as the 55- and 100-day SMA and the weekly and monthly R1s are located relatively close to each other.
Daily chart
SWFX market sentiment has remained at the same level of Thursday, as 59% of traders are holding open positions. Meanwhile, 51% of pending orders are now to sell the US Dollar.
OANDA traders have not changed their perspectives on the pair, with 54% of its clients having long positions (unchanged from Wednesday). Similar viewpoint is held by Saxo Bank with 54% long positions.