- SWFX market sentiment is 60% bearish (+0%)
- 57% of pending orders in the 100-pip range are to BUY the US Dollar
- Strong resistance around 113.70
- Upcoming events: US CB Consumer Sentiment and Pending Home Sales
Due to Christmas holidays the currency rate is moving horizontally between the 55- and 100-hour SMAs. Most probably this steady movement is going to continue for the next one-two days.
Japanese household expenditure rose more than anticipated in November, while the unemployment rate reached 45-year low and consumer price growth ticked up in the same period, providing the Bank of Japan some hope that the recovery could bring the inflation rate to its goal of 2%. The country's jobless rate fell unexpectedly to 2.7%, while job availability was at 44-year high, suggesting lingering job market's recovery. Separate data indicated that household spending rose 1.8% for the month, far above expectations for a 0.6% increase.
US Consumer sentiment
The only event that is worth following this week will happen at 15:00 GMT when the Conference Board Inc. will publish information on American consumers' sentiment.
USD/JPY moves between two SMAs
In the end of the previous week the currency exchange rate made a breakout from the rising wedge formation. However, because of a decreased liquidity that was caused by Christmas holidays it failed to make a rebound from the lower trend-line of a junior ascending channel. At the moment, it is moving horizontally being squeezed between the 55- and 100-hour SMAs. As there are no important data releases scheduled today, such steady movement is expected to continue. In larger perspective the pair might slip back to the weekly PP because of existence of an alleged resistance zone located near the 113.35 and 113.40 marks. However, there is a need to take into account that almost 56% of pending orders in 100-pip range are set to buy.Hourly chart
Over the last four trading days the currency rate was moving horizontally after reaching sufficient resistance near the 113.41 mark. From this perspective, most probably it will continue trying to slip back to the weekly PP located at the 113.10 level.
Daily chart
SWFX market sentiment is bearish, as 60% of open positons are short (+0%). Meanwhile, 53% of pending orders are to buy the American Dollar.
OANDA traders have turned bearish on the pair, as they are holding 53% short positions in this session. Saxo Bank clients are also bearish with 54% short positions (-2%).