- The Swiss market sentiment is 51% bullish
- 54% of pending orders in the 100-pip range are set to SELL
- First notable macroeconomic data will be on Wednesday
The USD/JPY pair has touched the 111.50 mark before the currency pair retraced back down to the 111.00 level on Monday.
The Census Bureau released US Core Durable Goods Orders data that came lower-than-expected of 0.2%,compared with the forecasted 0.5% . The data release showed traders that the change in the total value of new purchase orders placed with manufacturers for durable goods was lower than expected this time.
Jerome Powell, the chairman of the Federal Reserve said: " I see the current path of gradually raising interest rates as the [Federal Open Market Committee's] approach to taking seriously both of these risks, while inflation has recently moved up near 2%, we have seen no clear sign of acceleration above 2%, and there does not seem to be an elevated risk of overheating."
Three notable releases during the week
It is the last week of the month, due to that reason there are almost no notable events scheduled for the most part of the week, which might cause large fluctuations in the currency markets.
On Wednesday, the US Preliminary GDP will be released at 12:30 GMT. The data, in theory, should provide a large reaction in the financial markets. Live event cover on the Dukascopy Webinar platform by Dukascopy Analytics will start at 12:20 GMT.
On the same day the weekly US Crude Oil Inventories data release will be published at 14:30 GMT, which has given bounces of at least 0.5 USD or 50 base points throughout the summer. Although, note that two times the data release disappointed macroeconomic release traders.
The week's last notable event will be the publication of the monthly Canadian GDP at 12:30 on Thursday. This data set is set to give the largest reaction from all of the releases, as CAD GDP has been constantly giving a reaction of at least 40 base points each month on the USD/CAD.
USD/JPY returns back to trend-line
On Monday morning, the US Dollar appreciated against the Japanese Yen fitting back into the existing trend line. The currency pair passed the weekly PP (110.83) during the Friday's trading session. USD/JPY is fluctuating in the range between the 110.90 and 111.50, waiting for the conformation.The 100-hour and 200-hour SMAs have crossed during today's trading session early in the morning, flashing strong bullish signals for traders. The 55-hour SMA is taking a role of the resistance level at 111.17, giving a pull-back to touch the bottom boundary of the trend line.
Hourly Chart
The USD/JPY chart just like many other USD charts has passed a notable long term level. Namely, the upper trend line of a long term descending pattern has been broken. Due to that reason a full review of the pair is set to be conducted, as soon as the currency swing to the upside ends and a new reference point is available.
Daily chart
The Swiss Foreign Exchange sentiment was 51% long, which is almost perfectly neutral. Prior to that retail traders of SWFX were shorting the market.
In the meantime, trader set up orders have abandoned the neutral zone. Namely, 54% of all trader set up orders are set to sell the pair.
59% of Saxo Bank traders are short today. Meanwhile, OANDA traders are no longer neutral, as the brokerage's clients are 53% short.
It can be clearly seen that the global forex market participants are unsure what will be the next move on the charts of the USD/JPY, as the bears and bulls are almost balanced.
Spreads (avg, pip) / Trading volume / Volatility