- SWFX market sentiment is 60% bearish (-3%)
- Pending orders in the 100-pip range are at equilibrium
- Significant resistance is located near 113.20
- Upcoming events: S Average Hourly Earnings m/m, US Non-Farm Employment Change, US Unemployment Rate, FOMC Members Dudley and Kaplan to speak
The US companies slashed hiring to the lowest level in 11 months in September owing to the disruption of business activities caused by Hurricanes Irma and Harvey, according to the ADP Employment report.
The private survey showed that the country's businesses added 135K jobs in September, suggesting the most of Hurricane's impact forced small retailers to cut hiring.
US in focus on Friday
The Unites States is to release three important data sets for the month of September at 1230GMT, namely, the Average Hourly Earnings, the Non-Farm Employment Change and the Unemployment Rate.
In addition, two speeches FOMC members are expected today. The President of the Federal Reserve Bank of New York is to present ‘The Monetary Policy Outlook and the Importance of Higher Education for Economic Mobility' and the President of the Federal Reserve Bank of Dallas Robert Kaplan is to participate in a panel discussion at the Investing in America's Workforce Conference at 1615GMT and 1645GMT, respectively.
USD/JPY heads towards 113.21
In the first half of the day, the pair continued to move, as expected. However, a speech delivered by Governor Powell created a favourable impulse for the buck and elevated it against the Yen by 0.36% just in couple of hours.The fact that the pair did fall below the 112.40 level and made a rebound additionally confirms that it is moving in a medium-term ascending triangle. As the pair faces no barriers on its way, it is likely to surge to the upper resistance line of this pattern, which is located at the 113.21 level.
Although a fourth rebound seems a more plausible scenario, there is a need to take into account an effect from a release of information about the US labour market later this day, which might lead to premature breakout.
Hourly chart
The pair's positioning has not changed during the past four trading sessions, as USD/JPY continues to trade with low volatility on Friday. However, there is still some upside potential that could guide the pair towards the weekly R1 or R2 at 113.37 and 114.21, respectively (these levels, however, will change during next week).
Daily chart`
The bearish market sentiment has decreased on Friday, as the number of traders holding short positions is at 60% (-3%). In addition, 51% of pending orders are to sell the US Dollar.
Conversely, OANDA clients have not changed their open positions on Friday, as they remain 53% long (+1%). In addition, 52% of Saxo Bank traders are also holding long positions (-1%).