- SWFX market sentiment is 55% short
- Pending orders in the 100-pip are set to sell in 53% of all cases
- Weekly calendar review at 12:00 GMT
The US Dollar has fallen against the Japanese Yen more than it was expected. Namely, the lower trend line of a dominant ascending pattern was passed on Friday, as the rate plummeted below the support of various simple moving averages.
The Automatic Data Processing released the monthly US ADP Non-Farm Employment Change data that came out lower-than-expected of 177K, compare to forecasted 191K.
"Business' number one problem is finding qualified workers. At the current pace of job growth, if sustained, this problem is set to get much worse. These labor shortages will only intensify across all industries and company sizes.", said Mark Zandi, Moody's Analytics' chief economist.
Start of the week at 12:00 GMT on Dukascopy webinars
The week will start with the Dukascopy Analytics webinar, which will cover the weekly economic calendar at 12:00 GMT.
However, it can already be stated that the only notable US data release will occur on Friday. The US CPI data sets will be published at 12:30 GMT on that day.
USD/JPY breaks dominant pattern
On Monday the USD/JPY currency pair traded near the 110.50 mark. At that level it was being kept by the resistance of the 200-hour simple moving average. In addition, the 200-hour SMA was about to be strengthened by the 55 and 100-hour SMAs, which were located just above.However, more notable was the fact that the rate had fallen below the support of a long term ascending pattern. The event took place suddenly, as the 55-hour SMA failed to provide support.
In regards to the future, the rate is likely going to be beaten down by the SMAs to the 110.20 level, where the 61.80% Fibonacci retracement level is located at.
Hourly Chart
On the daily chart it can be seen also that the dominant support has been passed. However, it depends on the way one charts. If the low levels of the candles are sued for the drawing of the lower trend line, then it can be seen that the support line is a part of the 110.20 support cluster, which is yet to be reached.
Daily chart
Swiss Foreign Exchange sentiment is no longer bullish. Instead 55% of open positions are short on Monday.
In addition, 53% of trader set up orders are set to sell the
It could be clearly observed that the bulls have closed their long positions. Instead the retail sector has decided to short the pair. Most likely that is due to the fall below the technical levels of significance.
OANDA traders have become 52% bullish, compared to the 54% long sentiment on Friday.
Meanwhile, Saxo Bank traders are 51% bearish.
Spreads (avg, pip) / Trading volume / Volatility