- SWFX market sentiment is 54% bullish
- 51% of pending orders in the 100-pip are set to sell
- Empty calendar for US macroeconomic data traders
On Monday, the USD/JPY currency exchange rate had retreated after booking a new high level. However, the surge was about to resume.
The Bureau of Economic Analysis released quarterly Gross Domestic Product data that came out lower-than-expected of 2.0%, and was also lower than the previous period.
According to Mario Blascak, the European Chief Analyst: "The largest positive contributions to GDP stem from nonresidential fixed investment, personal consumption expenditures, and exports. The biggest drag in PCE, exports, state and local government spending, federal government spending and a downturn in residential fixed investment. "
Empty calendar for US Dollar macroeconomics
On Monday there was minor data release, which did not affect the financial markets after all. Namely, the ISM Manufacturing PMI was released at 14:00 GMT.
Besides that data release, the economic calendars are empty in regards to the US Dollar until Thursday. On Thursday, the ISM Non-Manufacturing PMI and the ADP Non-Farm Employment Change might influence the USD/JPY through the strength of the US Dollar.
ADP data will be out at 12:15 GMT. ISM data will be published at 14:00 GMT. Both data releases will be covered by Dukascopy Analytics on the bank's live webinar. They will begin 10 minutes before the data is released, respectively, 12:05 GMT and 13:50 GMT.
USD/JPY finds support in SMA
After booking a new high level against the Japanese Yen, the US Dollar retreated during the early hours of Monday's trading session. However, by the middle of the day the currency exchange rate had stopped the decline. Namely, the decline was stopped by the support of the 55-hour simple moving average near the 110.60 markMoreover, the currency exchange rate was expected to surge even more in the upcoming trading sessions. The basis for this assumption is the fact that above the currency exchange rate there were no resistance levels up to the 111.30 mark.
Hourly Chart
The additional information that the daily chart provides is that the currency exchange rate has the support of the 200-day simple moving average near the 110.20 cluster.
Moreover, the 55-day SMA was far below the rate, but steadily approaching near the 109.70 mark.
Daily chart
On Monday, 54% open positions of SWFX market traders were long. The open position proportion had barely changed since Friday, as 54% were long during that trading session.
However, after last week being set in 51% to 55% of all cases to buy. Pending orders on Monday were neutral.
The sudden change in the pending orders might be explained by the fact that the currency exchange rate has overextended its surge. Namely, there are no more people being interested into buying into the USD/JPY. Meanwhile, the pair is not being dumped, as the already long traders are still riding the surge with a trailing stop loss.
OANDA traders remain bullish with 53% of open positions going long on the USD/JPY pair today.
Meanwhile, Saxo Bank traders are still neutral, as 51% of open Saxo positions are long.
Spreads (avg, pip) / Trading volume / Volatility