- SWFX market sentiment is 57% bearish (-3%)
- 65% of pending orders in the 100-pip range are to SELL
- The pair is limited by the 55-, 100- and 200-hour SMAs near 112.80
- Bank Holiday in the US and Japan
The Labour Department showed that the US job market faced unexpected decrease in jobs, as the economy lost 33K positions in September, reflecting the impact of Hurricanes Harvey and Irma.
However, the unemployment rate declined to a new low of 4.2% in the same period. Following the report, market expectations for the Federal Reserve to raise rates in December were still high.
Bank Holidays in US and Japan
Monday is set to be calm in terms of fundamental events, as banks in the United States are closed due to Columbus Day. There is still one data release from Japan, namely, the monthly Current Account published at 2350GMT. However, it is unlikely to affect the given pair in any way.
USD/JPY down 0.6% amid growing Trump & Kim rhetoric
In line with expectations, the currency rate continued to climb to the top, trying to reach the upper line of an ascending triangle pattern, another escalation of the North Korean crisis led to fall of the rate by 68 basis points just in two hours.Accordingly, in the beginning of this trading session the currency rate found itself not only below the updated weekly PP at 112.81 but also the 55-, 100- and 200-hour SMAs. This combined resistance suggests that the pair will be forced to continue to fall.
The fact that the closest southern barrier is located only at the 112.20 mark supports the above assumption. On the other hand, as soon as markets will come down, the Dollar is going to start to gradually recover against the Yen.
Hourly chart
The pair has shown no changes in its movement for the past six trading sessions. The US Dollar is still hindering near the upper wedge boundary and between the weekly PP and S1 at 112.80 and 112.20, respectively.
Daily chart`
The bearish market sentiment has decreased on Monday, as the number of traders holding short positions is at 57% (-2%). In addition, 58% of pending orders are to sell the US Dollar.
OANDA clients have turned bearish on the US Dollar on Monday, as their positions are 53% short. In addition, 52% of Saxo Bank traders are currently holding short positions.