- SWFX market sentiment is 56% bearish
- 60% of pending orders in the 100-pip range are to BUY
- US Crude Oil Inventories
The monthly resistance level at 111.20 pressurizes the USD/JPY currency pair downwards on Tuesday.
The Energy Information Administration released the US Crude Levels data that came out better-than-expected of 5.8M, compare to forecasted negative 3.4M.
The managing editor from S&P Global Platt's, James Bambino, said: "The build brings current stocks to around 1.8 percent below the five-year of EIA data, in from over 4 percent below the week prior. His means that not only are crude stocks rising, but they are also lining up more closely to historical norms."
US Crude Oil Inventories
The main fundamental event today is the US Crude Oil Inventories at 2:30 GMT. This data release will be covered by Dukascopy research team at bank live webinar.
USD/JPY fell below 111.20
The US Dollar has gained slightly against the Yen during the previous two sessions. Despite fluctuating near the 55-hour SMA for most of the session, the pair finally managed to overcome this weekly resistance late on Tuesday.This development allows to think that appreciation could follow today. The upward tendency of technical indicators is likewise confirming this scenario. However, this up-move is likely to be limited due to several important resistance levels located nearby.
Two important ones is the breached ascending channel and the 200-period SMA at 11.80 and 112.20, respectively. The latter is unlikely to surrender today.
If looking at support, the Greenback has still room for a decline down to the senior channel at 110.50. This line might be reached within the following trading sessions.
Hourly Chart
The USD/JPY currency exchange rate has been losing strength for the past one week. The daily time frame has shown that the pair has ended the last five consecutive trading days with bearish candles.
Daily chart
SWFX traders are still short on the USD/JPY pair, as 56% of open positions were bearish during the morning hours. Furthermore, traders set up orders are still bullish, as 60% of trader set up orders are to buy the US Dollar.
Meanwhile, the market sentiments of OANDA traders are bullish on the USD/JPY pair as 53% of open positions are long. In addition, Saxo bank traders are 51% bullish in regards to this exchange rate.
Spreads (avg, pip) / Trading volume / Volatility