- SWFX market sentiment is 65% short
- Pending orders in the 100-pip are set to buy in 53% of all cases
- Other pair impacting data sets later in the day
There was a large increase of volatility on the USD/JPY. However, the currency exchange rate has managed to score a new high level, as it traded above the 11.20 mark.
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.
Various data sets in the second part of the day
Wednesday is set to be busy for webinars, as the schedule is almost full for the day.
At 12:00 GMT the Dukascopy Analytics representatives will host an introduction to chart patterns tutoring webinar. It will be followed by the quick cover of last week's fundamental events.
Meanwhile, there will be data releases occurring the day, which will impact other currency pairs. Namely, the Reserve Bank of Canada will release their interest rate at 14:00 GMT. Afterwards at 14:30 GMT the US Crude Oil Inventories data release will take place.
USD/JPY reaches seven-week high
After reaching a seven-week high at 111.35 on Tuesday morning, the USD/JPY currency pair began to decline, and by the end of the US session, the pair lost 58 base points.However, after piercing the 55-hour simple moving average, the exchange rate made a U-turn north. Furthermore, the Greenback has increased its trading range during this week. This suggests the pair might continue moving in the ascending pattern in the short term.
Meanwhile, technical indicators flash a strong bullish signal for the rest of this week.
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 bearish sentiment has continued to grow. Namely, 63% of open positions were short, compared to 55% of open positions on Monday.
In addition, 51% of trader set up orders are set to buy the US Dollar against the Japanese Yen.
It could be clearly observed that the bulls have closed their long positions. Instead the retail sector has decided to short the pair.
OANDA traders have become 52% bearish. The sentiment of the brokerage has been gradually going to the bearish side.
Meanwhile, Saxo Bank traders are once more neutral.
Spreads (avg, pip) / Trading volume / Volatility