- SWFX market sentiment is 62% bearish
- 54% of pending orders in a 100-pip range are to buy
- USD/JPY stranded between 100- and 200-hour SMAs on Wednesday morning
- Upcoming events: ADP Non-Farm Employment Change, ISM Non-Manufacturing PMI, Fed Chair Yellen to speak
The ISM stated that its index for the US manufacturing activity surged to 60.8 points in September, reaching the highest level in more than 10 years.
Solid advances in ISM-reported figures to a certain extent reflected affects from Hurricanes Harvey and Irma. The report showed an increase in exports measure as producers benefited from the Dollar's weakness, which made US supplies more attractive to overseas buyers.
Fed Chair Yellen to speak at 1915GMT
The US is to release ADP Non-Farm Employment Change and ISM Non-Manufacturing PMI at 1215GMT and 1400GMT, respectively. In addition, the Federal Reserve Chair Janet Yellen is to deliver opening remarks at a community banking conference at 1915GMT.
USD/JPY rebounds from 113.21 level
As it was expected, after a rapid short-term surge the pair stopped at the 113.21 level and then began to move to the bottom, breaking from a dominant ascending channel.At the moment, the rate is approaching a combined support formed by the 200-hour SMA and the weekly PP at 112.42, which is located slightly above the bottom trend-line of another ascending channel that still remains in force. This fact points out on an upcoming rebound.
However, the pair might continue to slip to the bottom if the US employment data will not justify experts' forecast. An additional impulse is also expected to be provided by the subsequent Janet Yellen's speech in St. Louis.
Hourly chart
As apparent on the chart, the US Dollar failed to maintain its strong upside momentum on Tuesday and consequently closed with slight gains near the upper wedge boundary. The rate has reversed to the downside and is testing the weekly PP at 112.42 in this session. The closest resistance is set by the distant weekly R1 at 113.37.
Given that the pair has been locate near the upper wedge boundary within the past week, confirmation is still needed to see if the Greenback is to bounce off the given line.
Daily chart`
The bearish market sentiment has increased on Wednesday, as the number of traders holding short positions is at 62% (+2%). In addition, 54% of pending orders are to sell the US Dollar.
OANDA clients are bullish on the pair, with 52% of open positions being long in this session (-1%). In addition, 53% of Saxo Bank traders are also holding long positions (+2%).