- SWFX market sentiment has become 51% short
- 63% of pending orders in the 100-pip are to BUY
- No macro releases relevant to this pair
The US Dollar has broken another resistance cluster against the Japanese Yen. This was expected. However, the surge has been occurring even faster than expected, as the currency rate breaks one resistance after another without any additional technical support level.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
End of the week has Canadian data
On Thursday the Dukascopy Analytics team hosted a macroeconomic data trading webinar, which can be found on our YouTube channel here.
In regards to Friday's trading session, the economic calendar is empty, if one is only looking for US data releases. So there are no events scheduled that can influence financial markets and financial instruments from the US Dollar's strength perspective.
However, there will be a Canadian data release occurring at 12:30 GMT. Namely, the Canadian CPI and Core Retail Sales will be published. The analytics webinar, which will cover the data release, will begin at 12:00 GMT.
USD/JPY returns to 111.00
Upside momentum continues to drive the USD/JPY exchange rate for the fourth consecutive session. Being supported by the 55-hour SMA, the Greenback appreciated 88 pips until the psychological 111.00 mark where it was located this morning.It seems that the bearish sentiment could prevail in the market today, thus sending the pair for another test of the 55-hour SMA near 110.50. In case this level is surpassed, the ultimate daily low should be the 110.00 area where the 100-hour SMA, the weekly R1 and the 61.80% Fibonacci retracement are located.
Conversely, further surge is restricted by the weekly R3 at 111.30. The Greenback could weaken against the Yen during the following trading sessions prior to picking up upside momentum once again.
Hourly Chart
The daily charts shows a new ascending channel pattern, which we marked some time ago. Since then it has been guiding the rate higher and higher.
Each day our analyst have been marking a new resistance level, which had been broken each consecutive day. The next target is the weekly R3 at 111.30 mark.
Daily chart
SWFX traders have become bearish on the USD/JPY pair, as 51% of open positions are short.
Meanwhile, trader set up orders are bullish with 61% of them being set to buy the Greenback.
The market sentiment of OANDA traders remains strongly bullish with 59% of them holding long positions. In addition, the number of long positions of Saxo bank traders is 56%.
Spreads (avg, pip) / Trading volume / Volatility