- SWFX market sentiment is 57% bearish (-2%)
- 51% of pending orders in the 100-pip range are to SELL
- The pair is limited by the 55-, 100- and 200-hour SMAs near 112.60
- Upcoming events: US JOLTS Job Openings, FOMC Meeting Minutes, Japan's Bank Lending y/y and PPI y/y
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 Meeting Minutes at 1800GMT
Traders should take into account two events that are scheduled for August 11. First, the US Bureau of Labor Statistics will publish its Job Openings and Labor Turnover Summary at 1400GMT. Second, the Federal Open Market Committee is to release the minutes of its most recent meeting at 1800GMT. Meanwhile, Japan will publish three sets of data today and early in the morning, namely, Bank Lending and the Producer Price Index for the month of September at 2350GMT, as well as Tertiary Industry Activity at 0430GMT.
USD/JPY loses 0.37% amid missile launch
Another test of another North Korean ballistic missile expectedly led to sharp depreciation of the Dollar against the Yen. During the downfall the pair crossed the weekly S1 at 112.19, which was the only support barrier on its way. However, this active selling had a short term effect, as by the end of the day the buck traders managed to restore lost positions and return the rate back to the 112.50 level.Because of the Fed Meeting Minutes traders with bullish sentiment most probably are going to try to push the pair to the top. However, even in case of hawkish comments it would not be easy, as northern side remains protected by a combination of the 55-, 100- and 200-hour SMAs plus the weekly PP at 112.81. In addition to that, the North Korean problem hasn't gone anywhere.
Hourly chart
As apparent on the chart, USD/JPY remained trading between the weekly PP and S1 on Tuesday. However, the bearish sentiment is gradually taking the upper hand, as the Greenback has started to push south. The weekly S1 at 112.19 is reinforced by the 20-hour SMA, while a more distant southern barrier is the 200-day SMA circa 111.85.
Daily chart`
The bearish market sentiment has decreased on Wednesday, as the number of traders holding short positions is at 57% (-2%). In addition, 54% of pending orders are to sell the US Dollar (-2%).
OANDA clients remain increasingly bearish on the US Dollar, as their positions are 57% short (+3%). In addition, 52% of Saxo Bank traders are currently holding short positions (-1%).