- SWFX market sentiment is 55% bearish
- 61% of pending orders in the 100-pip are set to BUY
- Economic calendar review at 12:00 GMT
On Monday morning the USD/JPY rate had paused the plummeting downwards that occurred after the currency exchange rate passed the long term ascending channel's support line.The sharp move had most likely occurred due to a large number of medium and long term long positions being closed.
The Census Bureau released Residential Building Permits data that came lower-than-expected with a forecast of 1.35M in May, and lower from the previous period.
A survey showed that builders are: "..increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability."
Start of the week webinar
The day's economic calendar is empty for macroeconomic data release traders. However, there is another event, where to invest your time.
At 12:00 GMT Dukascopy Analytics will host this week's start of the week webinar. During the webinar analysts will explain this week's economic calendar events and take requests for data release covers.
USD/JPY stops near 109.40
After breaching the strong support line of a dominant ascending pattern, the US Dollar on Monday morning had paused the decline against the Japanese Yen.The reason for the pause of the decline was the combined support of a monthly pivot point and the weekly S1 near the 109.40 mark. The strength of the support levels might not be the main cause of the decline. Instead the decline of the Buck was already overextended prior to the meeting of the support levels.
Regarding the near term future, one needs to watch the mentioned support levels. If they get passed, the 109.10 mark, where the 50.00% Fibonacci retracement level is located at, will be targeted next.
Hourly Chart
The currency exchange rate has broken the long term ascending channel pattern, which was expected to guide the rate higher up to the 111.50 mark. The passing of the support slightly shocked the financial markets, as the passing of the support resulted in a plummeting move down to the 109.40 mark.
However, to note the largest differences from the hourly chart, one needs to first look at the daily simple moving averages. Namely, the 55-day SMA has approached from the downside and is set to support the previously described support cluster.
Daily chart
On Monday, 55% open positions of SWFX market traders were short. It was a decrease compared to the 60% on Friday.
Meanwhile, trader set up orders were no longer neutral, as 54% of set up orders were to buy on Monday morning.
It can be deducted from these facts that Dukascopy traders took profits from their short positions during the fall. In addition, some are preparing to buy the USD/JPY pair in case there is a rebound.
OANDA traders are bullish on the pair with 53% of open positions are going long on the USD/JPY pair today.
Meanwhile, Saxo Bank traders are no longer almost neutral, as 52% of open Saxo positions are long.
Spreads (avg, pip) / Trading volume / Volatility