- SWFX market sentiment was 51% short on Friday
- 55% of pending orders in the 100-pip are set to BUY
- Only Canadian data at 12:30 GMT
On Friday, the USD/JPY currency exchange rate had retreated down to the support of the dominant ascending channel up pattern. The support line was also strengthened by various other support levels.
The Bureau of Labor Statistics simultaneously released three data sets, where Average Hourly Earnings data that came out better-than-expected of 0.3%, compared to the 0.1% in the previous period.
Moreover, Non-Farm Employment Change data came out better-than expected of 223K, instead of economists forecast of 189K, and Unemployment Rate data came out to be less-than-expected of 3.8%.
Canadian data and G7 meeting
On Friday there is only one notable macroeconomic data release set to occur. However, it will only impact Canadian Dollar pairs, as the data is Canadian. Namely, at 12:30 GMT Canadian employment data sets will be published.
The data release will be a part of the Dukascopy Analytics end of the week webinar, which will begin at 12:00 GMT. Meanwhile, the data release coverage will start at 12:20 GMT.
In the meantime, note that the G7 meetings are taking place today and tomorrow. A trade scuffle can cause large changes in the strength of various currencies.
USD/JPY trades in narrow range
The USD/JPY exchange rate weakened 0.4% on Thursday following a test of the 200-day SMA, weekly R1 and 61.80% Fibonacci retracement at 110.20. As a result, the pair breached two SMAs on the hourly time-frame, but has nevertheless remained stranded between the 100– and 200-period (4H) SMAs in the 109.60/85 range this morning, as well.A breakout may occur in any direction; thus, two scenarios should be considered. The most probable daily low is the 109.40/35 mark, as the 55-period and 200-hour SMAs, the weekly PP and a channel line are located there.
Conversely, gains should be capped near the aforementioned 110.20 level due to the 200-day SMA being located there. Technical indicators are more in favour of the bullish scenario.
Hourly Chart
The pair has fully made the bounce off from a combined resistance cluster, which was still located at the 110.20 mark on Friday. Namely, on Friday morning the currency rate had reached down to the support line of the dominant ascending channel pattern below the 109.50 level.
The pair was set to face the support of the weekly PP and the 50.00% Fibonacci retracement level. The both mentioned levels of significance were located near the 109.15 mark.
Daily chart
Swiss Foreign Exchange market sentiment has become slightly bearish on Friday, as 51% of open positions were short. Previously, Swiss traders were neutral.
Meanwhile, for the third consecutive trading session 55% of orders were still set to buy.
This indicates that there is a pause in the trading, as orders haven't changed and the open position proportions remain almost the same.
The market sentiment of OANDA traders have decreased their bullish sentiment, as 54% of their traders are holding long positions. Previously, 57% of positions were long. In addition, the proportion of long positions of Saxo bank traders is 54%.
Spreads (avg, pip) / Trading volume / Volatility