- SWFX market sentiment is 70% bullish
- Pending orders in the 100-pip range are 59% to SELL
- US GDP release in focus
During the early hours of Wednesday's trading session the USD/JPY currency pair remained in the range reached on Tuesday. Although, it was clearly noticeable that the pair had found support during the ending phase of Tuesday, which had resulted in an approaching test of the resistance of the 200-hour SMA.
The Conference Board revealed weaker consumer confidence on Tuesday, but that was not enough to cause a significant move in the observed currency pairs. The United States CB reported a positive result of 127.7 points, still below expectations, following a downwardly revised data in the previous period.
March's figure reflected the fewer amount of responses showing expectations for higher incomes, better business conditions and more available positions in the following six months.
Watch out for US GDP release
Although the US and Chinese trade issues continue to trouble the markets via the strength of the US Dollar, which is highly affected by most news that surround the issue of global trade, there is a notable fundamental macroeconomic release set to occur on Wednesday.
Namely, the release of the US Final GDP is set to occur at 12:30 GMT. However, the final release of the GDP data is not usually causing large fluctuations as the initial release of the GDP.
The data release is set to occur during the Wednesday's research webinar of the Dukascopy Analytics team on the bank's webinar platform. Due to that tune in already before 12:00 GMT, as at that time the webinar is scheduled to start.
USD/JPY remains in range
The US Dollar's movement against the Yen was bounded between the 100– and 200-hour SMAs on Tuesday. Some additional volatility was introduced during the second half of the day; however, the pair lacked enough force to dash through any of these two barriers.The pair is trading near a medium-term channel located at 105.80. It is expected that this pattern is eventually breached to the upside, thus paving the way for a surge during the following weeks.
In the short term, it is likely that the pair continues trading within the same range until the US GDP data release at 1230GMT provides the necessary momentum for a breakout.
Technical indicators favour bearish correction in this session. Apart from the 105.40 area, no additional support levels are restricting the pair until its 2017/2018 low of 104.67.
Hourly Chart
After the recent events and the breaking of the previously drawn massive scale channel down pattern a full review of the situation has been conducted.
As it turns out, if one uses a different reference point for the lower trend line of the channel down pattern, its support hasn't been reached yet. The modified channel's support line is more likely to be touched near the 104.00 mark.
Daily chart
SWFX traders are still on the long side, as 70% of open positions were bullish during the morning hours.
However, trader set up orders remain bullish, as 53% 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 66% long positions. In addition, Saxo bank traders are 56% bullish in regards to this pair.
Spreads (avg, pip) / Trading volume / Volatility