- SWFX market sentiment is 69% bullish
- 63% of pending orders in a 100-pip range to sell
- The long term support is located near the 108.80 mark
- Upcoming Events: Preliminary UoM Consumer Sentiment
The US Dollar has returned to the zone close to the lower trend line of the large scale triangle pattern against the Japanese Yen. Due to that reason the situation needs to be monitored closely, as a breakout is possible.
The Labour Department revealed that the number of Americans filing for unemployment benefits fell to the lowest level in six months last week. The report showed the initial jobless claims dropped to 232K in the week ended August 12, down from the prior week's 244K. Data provided a good sign for the Federal Reserve as the further tightening in the labour market could encourage the US economic growth.
One minor US data release
This Friday will be a quiet day for swing traders, as there are no notable data sets scheduled to be released. However, there is one data release, which could cause fluctuations in one pair. Namely, the USD/CAD might increase volatility due to the release of the Canadian CPI at 12:30 GMT. The release will be covered by the Dukascopy Research team on the bank's live webinar platform.
USD/JPY approaches support below 1.09 mark
Due to the previous forecasts failing, a review of the USD/JPY pair has been conducted. It was revealed that the pair remains on a large scale in a descending channel.However, the recent surge of the US Dollar against the Yen occurred due to encountering a support of a long term channel up pattern. It was followed by a rebound, which can be observed on the chart. Although, it has ended and a short term decline has started in a presumed descending channel pattern.
In regards to Friday's trading, it can be expected that the rate will reach the monthly S1 and the support of the long term channel at 108.82.
Hourly chart
The Daily chart is the one, where the dangerous situation should be observed. It can be seen that the trend line is surrounded by two weekly levels if significance. From the upside the weekly PP is located t the 109.62 mark. Below the trend line the weekly S1 is at 108.33. Meanwhile, it has to be noted that the mentioned trend line of the long term pattern is strengthened by the monthly S1 at the 108.80 mark.
Daily chart
SWFX market sentiment is bullish on Thursday, as the number of open positions is 69% long. Furthermore, 53% of pending orders are to buy the US Dollar.
OANDA clients are likewise bullish on the pair, as 66% of all open positions are long. Similar viewpoint is held by Saxo Bank clients with 65% long positions.