- SWFX market sentiment was 53% bullish on Tuesday
- 53% of pending orders in the 100-pip are set to SELL
- US CPI data sets at 12:30 GMT
The surge of the US Dollar against the Japanese Yen continued on Tuesday, as the currency exchange rate extended its gains. Moreover, the currency pair had managed to break the resistance cluster near the 110.20 mark.
The Bureau of Labor Statistics simultaneously released three data sets, where Average Hourly Earnings data that came out better-than-expected of 0.3%, compared to the 0.1% in the previous period.
Moreover, Non-Farm Employment Change data came out better-than expected of 223K, instead of economists forecast of 189K, and Unemployment Rate data came out to be less-than-expected of 3.8%.
US CPI at 12:30 GMT
Tuesday is set to show data, which will influence the US Dollar and subsequently all of the financial instruments that are traded against it.
Namely, at 12:30 GMT the US CPI and Core CPI data sets will be published. The data release will be covered by the Dukascopy analysts, and the live coverage on the bank's webinar platform will begin at 12:20 GMT.
However, the USD/JPY is set to be more influenced by news from the joint summit of the United States and North Korean leaders, which is taking place in Singapore.
USD/JPY: minor upside potential apparent in morning
The US Dollar gained 66 pips against the Japanese Yen on Monday. The rate breached the weekly R1 and the 61.80% Fibonacci retracement at 110.16 and has since fluctuating slightly between this and the 110.50 mark.It is expected that upside risks still prevail until the weekly R2, the monthly R1 and the upper channel line are reached at 110.75. This point should provide strong resistance, thus forcing bulls to ease their upside momentum. The pair should subsequently reverse to the downside and target the combined support of the 55-, 100– and 200-hour SMAs and the weekly PP in the 109.60/85 area.
In case no fundamental events shake the market significantly in this session, the aforementioned support and resistance levels should force the pair to remain within the 109.60/110.75 range today.
Hourly Chart
If one looks at the daily chart, there are no surprises. The currency exchange rate clearly bounced off the support of the dominant ascending channel pattern.
Moreover, the currency pair has finally managed to pass above the 110.20 resistance cluster. Due to that reason it was expected that it will start to provide support to the currency pair, as it surges to the next resistance cluster, which was located at the 110.75 mark.
Daily chart
Swiss Foreign Exchange market sentiment became 53% long on Tuesday. On Monday, Swiss traders were neutral in regards to the pair.
Meanwhile, for the fourth consecutive trading session 54% of orders were set to buy.
This indicates that the surge did not occur due to the push provided by retail traders. Instead it was initially caused by the events of the G7 summit. Moreover, the surge was extended by the US-North Korea summit.
The market sentiment of OANDA traders have again increased their bullish sentiment, as 62% of their traders are holding long positions. Previously, 58% of positions were long. In addition, the proportion of long positions of Saxo bank traders is 52%.
Spreads (avg, pip) / Trading volume / Volatility