- SWFX market sentiment is neutral
- Pending orders in the 100-pip range are 51% to SELL
- Wait for Thursday to trade fundamentals
By the middle of Wednesday's trading the USD Dollar had been attempting to break a resistance near the 109.15 mark for the past two trading sessions. However, on Wednesday the pair had scored a higher high level, which indicated that the surge will continue.
On Wednesday the Conference Board Inc. released better-than-expected Consumer Confidence, surpassing the forecasts of 126.0 with the number of 128.7 in April.
USD/JPY currency pair remained under pressure afterwards. One of the main reasons for Greenback to rally was the high yield of the 10-year United States treasury bills, which showed notable gains during the start of the week.
Empty Wednesday
Wednesday is set to be an empty trading session for fundamental macroeconomic fundamental swing traders. The only worth mentioning event will be the Bank of Canada Governor's Poloz speech at 20:15. However it is only going to affect the USD/CAD pair.
Meanwhile, in regards to impact to the US Dollar and subsequently all other financial instruments that are pegged to it, the end of the week will be more important. On Thursday at 12:30 GMT the US Durable Goods data sets will be out.
However, the most important macroeconomic data set of the quarter will be released on Friday. Namely, the US Advance GDP will be published at 12:30 GMT.
Both the release of the Durable Goods Orders and Advance GDP will be covered by the Dukascopy analysts on the bank's live webinar platform ten minutes before the data is released.
USD/JPY allays near 109.00
USD/JPY managed to remain steady during the previous session, thus showing that the strong upside momentum that prevailed earlier this week has allayed.The US Dollar peaked at the weekly R3 and the 50.0% Fibonacci retracement near 109.00, went for a minor decline but nevertheless returned near this mark on Wednesday morning.
It is expected that this session is dominated by bears that should send the pair closer to the 55-hour SMA and the monthly R2 at 108.60. Despite lack of fundamental releases, this are should surrender, thus paving the way for the Greenback to approach the 38.20% Fibo retracement, the 100-hour SMA and the weekly R1 at 108.00.
In case the 55-hour SMA holds strong, the rate should not surpass the 109.50 mark.
Hourly Chart
There is something very notable occurring on the daily timeframe's chart. Namely, the pair has broken through the previously drawn long term resistance line.
Due to that reason technical chartists need to wait for the rate to provide a new reference point and only afterwards measure the risk to return trade-offs by drawing new medium and long term patterns.
Daily chart
SWFX traders had become neutral on the USD/JPY, as 50% of open positions were bullish during the morning hours. Trader set up orders are likewise bullish with 61% of pending orders being set to buy the Greenback.
Meanwhile, the market sentiment of OANDA traders remains strongly bullish with 61% long positions. In addition, Saxo bank traders are 56% long on this pair.
Spreads (avg, pip) / Trading volume / Volatility