- SWFX market sentiment is 67% bullish
- Pending orders in the 100-pip range are 64% to BUY
- US Producer Price Index
Compared to Monday's trading session the USD/JPY currency pair had surged in a sudden jump, which lasted two hours at midnight. Meanwhile, the markets looked like preparing for the release of the US Producers Price Index.
The Bureau of Labor Statistics revealed much lower-than-expected data in non-farm employment change in March. However, there was an employment growth of 103K, it decreased more than three times from 326K in the prior month.
Without non-farm employment change, there were two more data sets that came out simultaneously. Average hourly earnings stayed in line with the forecast, however, the unemployment rate came out to be 4.1%, which was 0.1% more than expected.
Producers Price Index of the US
The first notable event of the week is about to occur on Tuesday. Namely, the US Producers Price Index is set to be published at 12:30 GMT.
The data release will be covered by the Dukascopy Research team ten minutes prior to the data being released. Join the bank's webinar platform at 12:20 GMT to enjoy the show.
USD/JPY surges in Asian session
USD/JPY remained in between the 55– and 200-hour SMAs on Monday. During the first part of the day, the US Dollar tried to surpass the former and thus re-test a March high at 107.50.Lacking the necessary upside momentum, bulls gave up their positions and allowed for a fall down to the long-term moving average, the weekly PP and the 23.60% Fibonacci retracement.
The pair gained strong upside momentum early this morning, as comments by the Chinese President diminished considerably demand for the Yen as a save-haven currency.
A surge could be a possibility today, especially if the 55– and 100-hour SMAs have been surpassed. The nearest point of resistance is the monthly R1 a 107.50. The weekly R1 is likewise located nearby. Conversely, a decline should not exceed the 106.70 level.
Hourly Chart
On the daily chart one can observe that the main focus is still on the medium term ascending channel pattern, which is aimed in a rather sharp angle upwards.
Due to that angle and the range of the pattern, it is assumed that it only represents the first move in the borders of a new long term ascending channel pattern.
Daily chart
SWFX traders are still on the long side, as 67% of open positions were bullish during the morning hours. Moreover, trader set up orders remain bullish, as 60% 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