- SWFX market sentiment is 51% bullish
- 52% of pending orders in the 100-pip are to BUY
- US PPI and Core PPI
The USD/JPY currency pair has breached the upper boundary of a junior ascending channel during the early hours of Wednesday's session. However, the pair has entered a short period of consolidation during the European trading session.
The Institute for Supply Management released lower-than-expected Non-Manufacturing Purchasing Managers' Index data of 56.8 for the month of April.
"The trade tensions are impacting purchasing of steel and are causing suppliers to send letters of concern," a respondent from the construction industry said.
US Crude Oil Inventories
The main fundamental event today is the US Crude Oil Inventories at 2:30 GMT.
Meanwhile, some other data releases are scheduled at 12:30 GMT. Namely, the US PPI and Core PPI which will be covered by Dukascopy research team at bank live webinar.
USD/JPY breached junior pattern
Tuesday's trading session was spent in a calm manner for the USD/JPY exchange rate, as it remained pressured to the downside by the 200-hour SMA. Meanwhile, support was provided by the lower boundary of a seven-week channel.This lack of movement shifted dramatically during the Asian session when the pair shot up 51 pips within two hours, thus instantly breaching the 55-, 100– and 200-hour SMAs and the weekly PP. This move stopped near the short-term channel circa 109.80. It is expected that this surge leaves the rate stable for a couple of hours.
Meanwhile, given the strong support cluster formed by the breached moving averages, the US Dollar should maintain its northern direction in this session. In case the weekly R1 at 110.00 is surpassed, the next resistance is set by the 51.80% Fibo at 110.20.
Hourly Chart
On the daily chart, the USD/JPY exchange rate reverses from the lower boundary of a dominant channel where the 50.00% Fibonacci retracement level is located.
Daily chart
SWFX traders remain bullish on the US Dollar, as 51% of open positions were long during the morning hours. Set up orders are bullish with 52% of them being set to buy the Greenback.
The market sentiment of OANDA traders is strongly bullish with 63% of them holding long positions. In addition, the number of long positions of Saxo bank traders is 60%.
Spreads (avg, pip) / Trading volume / Volatility