- SWFX market sentiment is 59% bearish (+2%)
- 55% of pending orders in the 100-pip range are to SELL
- The pair is limited by the 55-, 100- and 200-hour SMAs near 112.75
- Upcoming events: FOMC Members Kashkari and Kaplan to speak, Japan's Core Machinery Orders m/m,
The Labour Department showed that the US job market faced unexpected decrease in jobs, as the economy lost 33K positions in September, reflecting the impact of Hurricanes Harvey and Irma.
However, the unemployment rate declined to a new low of 4.2% in the same period. Following the report, market expectations for the Federal Reserve to raise rates in December were still high.
FOMC Members to speak
Japan is to release its monthly Core Machinery Orders at 2350GMT. Meanwhile, two members of the Federal Open Market Committee are to speak during the following 24 hours, namely, the President of the Federal Reserve Bank of Minneapolis Neel Kashkari is to deliver opening remarks at the Regional Economic Conditions Conference at 1400GMT, while the President of the Federal Serve Bank of Dallas Robert Kaplan will deliver a speech about the economic outlook at the Stanford Institute for Economic Policy Research at 0000GMT.
USD/JPY fails to soar to 112.80
An assumption about further movement of the pair was partially confirmed yesterday. On the one hand, bulls made not less than five attempts to break to the top and restore lost positions. On the other hand, a combination of the 55-, 100- and 200-hour SMAs as well as the weekly PP at 112.81 blocked each one of them.As long as investors continue to fear further escalation of the North Korean crisis, the Yen is likely to continue to gain value against the Dollar. In support of this assumption, the average market sentiment continues to be 61% bearish.
From technical perspective, there is a need to take into account that while the northern side is full of many technical indicators, the southern side contains only the weekly S1 that is located at the 112.19 level.
Hourly chart
The pair has shown no changes in its movement for the past six trading sessions. The US Dollar is still hindering near the upper wedge boundary and between the weekly PP and S1 at 112.80 and 112.20, respectively. However, the minor slope downwards indicates that the pair might actually depreciate within this week.
Daily chart`
The bearish market sentiment has increased on Tuesday, as the number of traders holding short positions is at 59% (+2%). In addition, 56% of pending orders are to sell the US Dollar (-2%).
OANDA clients remain bearish on the US Dollar on Tuesday, as their positions are 54% short (+1%). In addition, 53% of Saxo Bank traders are currently holding short positions (+1%).