- Swiss market sentiment is 52% bearish
- 55% of pending orders in the 100-pip range are set to SELL
- Canadian release at 12:30 GMT
The USD/JPY pair retreated on Friday. However, the pair remained in the range of the previous trading session.
The Census Bureau released Retail Sales data that came better-than-expected of 0.5% to forecasted 0.1%. The data represents a good sign for the Greenback, as well as an increase of total value of sales at the retail level.
Michael Feroli, an economist at JPMorgan Chase said: "It gives us comfort that consumers are nowhere near to being as overstretched as they were in the years heading into the Great Recession".
Canadian CPI is the only thing on the calendar
Friday's economic calendar has only one notable data release on it. Although, it is a Canadian one that is only going to influence the Canadian Dollar pairs. Namely, the Canadian CPI data will be released at 12:30 GMT.
The event will be covered by the Dukascopy analysts on the bank's live webinar platform. The cover will begin at 12:00 GMT. This time it is early, as traders will be shown, how to prepare for a data release.
USD/JPY stopped at 111.00
Following a reversal from the weekly and monthly S1s mid-Wednesday, the US Dollar began edging higher against the Japanese Yen. This advance was very limited due to being restricted by the 55-, 100– and 200-hour SMAs near 111.00.Technical signals are mixed for today. However, given that the above resistance cluster was not surpassed, bulls could fail to achieve this today, as well. This allows to think that the US Dollar is more likely to push lower. If the monthly and weekly S1s are breached, the junior channel line at 110.00 is the following downside target.
The general expectation about this session is that no significant moves are likely to occur in any direction, thus leaving the Greenback fluctuating in the 110.40/111.00 range.
Hourly Chart
Since the breaking of the speculative descending long term pattern was broken, there are no notable dominant pattern observable on the pair's daily chart. Although, one is highly likely going to reveal itself in the future.
Meanwhile, it could be seen that the 55-day simple moving average was influencing the currency exchange rate during the middle of August. Meanwhile, on the daily chart one could clearly observe how the various weekly and monthly pivot points influence the currency pair.
Daily chart
Instead of the slight bearish sentiment that was observable on Thursday, on Friday 52% of open positions on the Swiss Foreign Exchange were short, which is considered neutral.
In the meantime, 53% of trader set up orders are set to sell the US Dollar in favour to the Japanese Yen.
Saxo Bank traders are no longer shorting the USD/JPY, as 59% of set up orders at the brokerage are long. Meanwhile, OANDA traders are still 55% long on the pair.
The drastic fluctuations in the Swiss Foreign Exchange sentiment have ended. The sentiment was bouncing around, as Swiss trader either could not decide what was happening with the pair or took advantage of the short term fluctuations. On Friday, these fluctuations had stopped as almost neutral sentiment set in both in the open positions and the pending orders to sell or buy.
Spreads (avg, pip) / Trading volume / Volatility