- The market sentiment of the Swiss Foreign Exchange is 53% long
- 53% of pending orders in the 100-pip are to SELL
- No US macroeconomic data releases
The USD/JPY currency pair has encountered the resistance of the 55-hour SMA, which forced the rate lower. Namely, on Thursday morning the currency pair traded near the 108.70 mark.
The Automatic Data Processing Inc. released Non-Farm Employment Change data that came out lower-than-expected of 178K, compared to the 204 in the previous period.
"Healthcare and professional services remain a model of consistency and continue to serve as the main drivers of growth in the services sector and the broader labor market as well," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
Nothing for US Dollar involved financial instruments on Thursday
After the busy Wednesday's trading session the macroeconomic calendars are almost empty. However, for any financial instrument, which involves the US Dollar, it is empty.
Meanwhile, macroeconomic data release traders are most likely going to be watching the release of the Canadian GDP at 12:30 GMT, which is surely set to increase volatility in the CAD pairs. The data release will be covered by the Dukascopy Analytics team beginning at 12:20 GMT.
USD/JPY expected to appreciate today
The US Dollar remained steady against the Japanese Yen on Wednesday. The pair did try to advance but was nevertheless stopped by the combined resistance of the 55– and 100-hour SMAs and the 50.0% Fibonacci retracement line. The shorter-term SMA has guided the pair ever since.It is likely that the Greenback re-tests this area once more during this session. A successful breakout would sent it up to the 200-hour SMA near 110.00. A further advance is unlikely.
Meanwhile, in the event of bears prevailing, this potential fall should not exceed the 108.15 mark, as the 55– and 100-day SMAs are providing a rather strong support level in this area.
Hourly Chart
On Monday, Dukascopy analysts noticed a new possible ascending channel pattern, whose lover trend line might provide support in the future.
However, that trend line did the expected already on Tuesday, as the rate managed to pass the support levels near the 109.00 mark and decline down to the next support level.
Namely, a combination of the lower trend line and the weekly S1 managed to stop the decline. Meanwhile, note that the 55-day SMA was approaching from the downside near a very strong support cluster near the 108.10 mark.
Daily chart
On Thursday, 52% of open Swiss Foreign Exchange USD/JPY positions were short. Previously, the sentiment was bullish, as 52% of open positions were long.
Meanwhile, trader set up orders are bullish with 51% of them being set to buy the Greenback. Previously, 54% of orders were to buy.
This indicates that, as the initial rebound against the dominant trend line occurred, retail traders had their short term buy orders carried out.
The market sentiment of OANDA traders has decreased, as 55% of their traders are holding long positions. Previously 59% of positions were long. In addition, the number of long positions of Saxo bank traders is 56%. On Wednesday, 58% were long.
Spreads (avg, pip) / Trading volume / Volatility