- SWFX market sentiment is 67% bullish
- Pending orders in the 100-pip range are 60% to SELL
- News from G20 meetings
The US Dollar has extended its gains against the Japanese Yen on Tuesday morning, as the currency exchange rate reached above the 106.50 mark. However, the pair was about to face a resistance line just above the just mentioned exchange level.
The US Census Bureau revealed on Friday that the US building permits data did not meet expectations, showing the growth pace of only 1.30M units in February, following the downwardly revised 1.38M reading in the prior month.
The stronger-than-expected fall in the US homebuilding was caused by a plunge in the multi-family housing construction offsetting a rise in single-family projects for the second month in succession.
G20 Meetings
In regards to the macroeconomic events this week, all attention will be on the GBP. So for other pairs there are other fundamental events to focus on. Namely, the G20 Meetings are still taking place on Tuesday.
Meanwhile, the markets expect a US rate hike to occur on Wednesday. The Fed is expected to increase the base rate from 1.50% to 1.75% at 18:00 GMT. That should cause a surge in the US Dollar.
USD/JPY still indecisive
The US Dollar continues to consolidate for the third consecutive session. During this time, a move above the 106.50 mark was restricted by the 200-hour SMA, while support was provided by a three-week up-trend.The pair was testing the former at the time of this analysis. It is likely that the same lack of momentum also continues in this session, as traders are awaiting patiently the Fed policy statement released tomorrow at 1800GMT. Additional resistance is likewise provided by a medium trend-line near 106.50.
Given the rate's inability to move above this mark for the last few sessions, it is more likely that that the US Dollar targets the 2017/2018 low and the weekly S1 at 105.30 today.
A fall below this level should not occur.
Hourly Chart
We have been expecting for a long time to finally spot a new long term pattern on the USD/JPY daily chart. It seems that something has been spotted.
Namely, the latest rebound provided the needed second reference point for a lower trend line of an ascending channel pattern. However, the drawn pattern is a very speculative one, as the upper trend line of it needs to be confirmed above the 107.00 mark.
Daily chart
SWFX traders are still on the long side, as 67% of open positions were bullish during the morning hours.
However, trader set up orders remain bullish, as 54% of trader set up orders were to buy the US Dollar in favour to the Japanese Yen.
Meanwhile, the market sentiment of OANDA traders remains strongly bullish with 75% long positions. In addition, Saxo bank traders are 56% bullish in regards to this pair.
Spreads (avg, pip) / Trading volume / Volatility