- SWFX market sentiment is 60% bearish (-2%)
- 52% of pending orders in the 100-pip range are to BUY
- Significant resistance is located at 114.20
- Upcoming events: US Flash Manufacturing PMI, US Flash Services PMI, Richmond Manufacturing Index
The National Association of Realtors reported on Friday that the US existing home sales gained 0.7% to a seasonally adjusted yearly rate of 5.39M in September.
The increase was sustained by dissipation of the effects of Hurricanes Harvey and Irma, though an enduring dearth of available properties kept weighing on overall activity. Moreover, the weak affordability is likely to keep prices high, upsetting considerable buyers' interest throughout the US.
Minor releases on Tuesday
Tuesday's trading session is likely to be calm in terms of fundamental events, as only three minor data releases from the United States are scheduled for today, namely, the Flash Manufacturing PMI, Flash Services PMI at 1345GMT and Richmond Manufacturing Index at 1400GMT.
USD/JPY retreats as expected
After reaching the high level above the 114.00 mark on Monday in the aftermath of the Japanese election the USD/JPY currency pair retreated back down to the support zone near the 113.20 mark. At that level the rate rebounded and offered a chance to adjust the drawing of the medium scale ascending channel pattern.In general the rate faced no resistance levels up to the mentioned 114.00 mark, as it was being driven higher by the support of the 55-hour SMA. Moreover, the SMA was supported by the ascending lower trend line of the dominant medium scale channel up pattern. Due to that reason it is assumed that the 114.00 mark will be reached once more.
Hourly chart
The US Dollar weakened against the Yen on Monday, thus pushing the rate back to the upper Bollinger band. Meanwhile, Tuesday's morning session was dominated by bulls that were holding the rate near the 113.60 mark. Given the characteristics of ascending wedge, the rate is likely to push lower in the upcoming days.
Daily chart`
SWFX market sentiment remains bearish in this session, as 60% of traders are holding short positions (-2%). In addition, 53% of pending orders is to sell the US Dollar (+2%).
Traders at OANDA are likewise bearish on the pair, as 54% of open positions are short (unchanged from Monday). In addition, the number of short positions by Saxo Bank clients is 51% (-1%).