- SWFX market sentiment was 51% bullish on Friday
- 71% of pending orders in the 100-pip are set to BUY
- Empty Trading session for macros
- Webinar dedicated to recent politics influencing USDJPY
Although the volatility of the currency exchange rate remains at the same high level as previously, the currency exchange rate has continued to follow the forecast path. Namely, the USD/JPY has pierced once more the resistance cluster near the 110.75 mark.
The Bureau of Labor Statistics released Consumer Price Index data that came out in line with a forecast of 0.2%, staying unchanged from the previous period.
"The slow but steady upward pressure on inflation could tilt a majority of policymakers to lift their suggested interest rate forecast," said Sal Guatieri, a senior economist at BMO Capital Markets.
Empty trading session for macros
The week has ended for macroeconomic data release traders, as there are no notable events scheduled for the day that might cause fluctuations in financial instruments that involve the US Dollar.
However, if one can spare the time, Dukascopy Analytics are hosting a webinar, which will be dedicated to the recent fundamental fluctuations of the Japanese Yen. Namely, there will be a look at the technical and the fundamental side of the pair.
The webinar is set to start at 12:00 GMT on the bank's live webinar platform.
USD/JPY gains momentum
The Greenback gained momentum against the Japanese Yen mid-Thursday. This appreciation of the US Dollar was likewise apparent for other major pairs trading against it.The slight fall apparent on Thursday morning was reversed to the upside when the rate reached the strong support of the 55–period (4H), 200-hour and 200-day SMAs circa 110.00. This resulted in a surge up to its two-week high and even further early today, as the rate passed the weekly R2 and the monthly R1 at 110.75.
Technical indicators remain bullish for this session, especially if the above resistance was breached. The nearest resistance now is the weekly R3 and the upper channel line at 111.22.
By and large, the pair should move towards the senior channel and the monthly R2 at 133.25 within the following trading sessions.
Hourly Chart
If one looks at the daily chart, there are no surprises. The currency exchange rate clearly bounced off the support of an ascending channel pattern.
The rate is set to slowly but steadily go higher until it eventually reaches the most dominant patterns resistance line near the 111.50 mark.
Daily chart
Swiss Foreign Exchange market sentiment are 51% long. For the whole week Swiss traders have been almost neutral in regards to the currency pair.
Meanwhile, for four consecutive trading session 57% of orders were set to buy. However, in the 100-pip range that proportion is above 70%.
Retail traders of Dukascopy have been shifting their positions, as the short term daily directions have been changing. However, on Friday it was clear that the piercing of the 110.75 mark has created large expectations of a break out to the upside.
Oanda traders have decreased their long position proportion, as they were 56% long. On Wednesday, 64% of positions were long. This indicates that as a short term decline began, traders began to take profit and/or short the currency exchange rate.
In addition, the proportion of long positions of Saxo bank traders is still slightly bullish with 52% of open positions being long.
Spreads (avg, pip) / Trading volume / Volatility