- SWFX market sentiment is 68% bullish
- Pending orders in the 100-pip range are 54% to BUY
- Empty session for swing trades
As the US Dollar has continued to surge again the Japanese Yen it finally encountered resistance strong enough to stop it. Namely, the support line of the previously active channel up line acted as a resistance to the currency exchange rate.
The Census Bureau released the Building Permits data that came out slightly better-than-expected and instead of the forecast of 1.33M, the residential building permits grew by 1.35M in the period of March.
Building Permits rose by 2.5% annually, reaching the 1.354M growth pace, thus signaling how much of a construction is in the process. Moreover, single-family house building has retained close to the utmost levels ever since the recession began.
Empty day for the US Dollar pairs
If yesterday was empty for swing traders in a Dukascopy analyst's perspective, then Friday is actually empty. There are no events scheduled for the day that could impact the strength of the currency pairs and commodities that are pegged against the US Dollar.
USD/JPY reaches two-month high
The trading session on Thursday did not introduce significant changes to the pair's position, as it remained fluctuating between the 55– and 100-hour SMAs and the weekly PP.This lack of movement was turned around in the Asian session when the Greenback surged 27 pips and re-tested its two-month high of 107.70. Technical indicators suggest that the same bullish sentiment could prevail in this session, as well.
Apart from the aforementioned trend-line, the nearest resistance is set by the weekly R1 and the 38.20% Fibonacci retracement at 108.00, while a more distant northern barrier is the weekly R2 at 108.42.
Prior to the expected surge, the pair might still return for a re-test of the 55-, 100– and 200-hour SMAs. The 107.40 is unlikely to be breached.
Hourly Chart
It is still assumed that the patterns, which can be observed now, are too small and are only a part of a larger trend, which is still in the formation.
However, the recent high levels have been used to map a resistance line, which might serve as a resistance to a speculated medium term channel up pattern.
Daily chart
SWFX traders have increased their bullish outlook, as 68% of open positions were bullish during the morning hours. Trader set up orders are likewise bullish with 59% of pending orders being to buy the Greenback.
Meanwhile, the market sentiment of OANDA traders remains strongly bullish with 68% long positions. In addition, Saxo bank traders are 57% long on this pair.
Spreads (avg, pip) / Trading volume / Volatility