- SWFX market sentiment is 66% bullish
- Pending orders in the 100-pip range are 53% to SELL
- US Durable Goods Orders
By the middle of Friday's trading the USD/JPY currency exchange rate had extended the decline, as the Buck continued to lose value. Most importantly the currency pair had passed the support of the most dominant descending channel pattern, which was drawn on the daily chart previously.
The US Census Bureau revealed on Friday that the US building permits data did not meet expectations, showing the growth pace of only 1.30M units in February, following the downwardly revised 1.38M reading in the prior month.
The stronger-than-expected fall in the US homebuilding was caused by a plunge in the multi-family housing construction offsetting a rise in single-family projects for the second month in succession.
US Durable Goods Orders
The main event of the week has occurred, the Fed rate hike has caused the US Dollar to plummet due to the fact that Jerome Powell revealed additional information. Namely, there will be three rate hikes this year. Due to the fact that it was less than already priced in by the markets, the drop has been occurring
Meanwhile, watch for the US Core Durable Goods orders being released at 12:30 GMT. The data release will be covered by the Dukascopy Research team during the Friday's research webinar, which will start at 12:00 GMT.
USD/JPY plunges to new yearly low
The US Dollar continued to trade lower against the Yen for the second consecutive session. This bearish momentum was rather steady during the most session on Thursday, as bears were reluctant to push the rate below its 2017/2018 low and the weekly S1 at 105.30.Strong downside risks were introduced late in the evening when the US Dollar weakened substantially in response to Trump announcing tariffs on Chinese imports.
The Asian session marked a slight consolidation above the weekly S2, the monthly S1 and the bottom boundary of a four-month channel circa 104.50.
It is expected that this cluster supports the rate and pushes the Greenback higher. The pair could hinder at 105.30, but eventually continue even higher to cap gains near the 106.30 area.
Hourly Chart
More downside has been experienced by the currency exchange rate. Most importantly even the long term massive scale descending channel pattern's support has been passed.
However, the various support levels near the 104.60 are providing support, and might provide a new reference point to mark the massive scale situation. Although, due to the significance of the changes in the US monetary policy, the surge of the USD is quite unlikely.
Daily chart
SWFX traders are still on the long side, as 66% of open positions were bullish during the morning hours.
However, trader set up orders remain bullish, as 57% of trader set up orders were to buy the US Dollar in favour to the Japanese Yen.
Meanwhile, the market sentiment of OANDA traders remains strongly bullish with 68% long positions. In addition, Saxo bank traders are 57% bullish in regards to this pair.
Spreads (avg, pip) / Trading volume / Volatility