- SWFX market sentiment is 62% bearish
- 51% of pending orders in the 100-pip range are to SELL
- Significant support is located at 113.70
- Upcoming events: US Unemployment Claims, FOMC Members Powell and Dudley to speak, US Preliminary Nonfarm Productivity q/q and US Preliminary Unit Labour Costs q/q
The Federal Reserve announced that it kept key interest rates unchanged and pointed to strong US economic expansion and better labour market conditions, as recent hurricanes had only short-term impact on economic activity.
The Bank's policymakers kept their encouraging stance, when acknowledging that consumer price growth was still soft, but did not lowered their evaluations of pricing expectations.
US Unemployment claims
The United States is to release three sets of data at 1230GMT, namely, the weekly Unemployment Claims and the Preliminary Nonfarm Productivity and Unit Labour Costs for the third quarter of 2017.
Meanwhile, the Federal Reserve Governor Jerome Powell is due to deliver opening remarks at the Alternative Reference Rates Committee Roundtable at 1230GMT. The President of the Federal Reserve Bank of New York William Dudley is set to deliver closing remarks for the same event at 1620GMT.
USD/JPY trades in a limbo near 114.00
As the FOMC Meeting did not bring any unexpected news, the surge of the rate was limited. In other words, the pair once was stopped by resistance barrier at the 114.24 level. The fully-fledged rebound did not happen as well, as the 55-, 100- and 200-hour SMAs together with the weekly PP formed a strong support level.As a result, the pair found itself in a limbo between the 114.24 and 113.74 marks. Until the new Fed Chair announcement, the pair is expected to continue to move horizontally. If President Trump chooses Professor Taylor, bulls might try to elevate the rate not only to the weekly R1 at 114.34 but also to the July 2017 maximum at 144.50.
If President Trump nominates Governor Powell, bears are likely to drag it down towards the monthly PP at 113.25.
Hourly chart
Upside risks prevailed on Wednesday, thus pushing the rate above the weekly PP and towards the 114.20 area. However, most of these daily gains were erased already on Thursday morning.
As apparent on the chart, the rate is located near the upper boundary of a long-term descending triangle circa 115.00. It is likely that the pair tries to approach this trend-line during the upcoming two weeks.
Daily chart`
SWFX market sentiment remains bearish on Thursday, as 62% of traders are holding short positions (unchanged from yesterday). Meanwhile, pending orders are at equilibrium in this session.
The bearish market sentiment of OANDA traders has increased, as 58% of open positions are short (+7%). The number of open positions for Saxo Bank clients is at equilibrium today, compared to 52% short on Wednesday.