- The Swiss market sentiment is 56% bullish
- 58% of pending orders in the 100-pip range are set to BUY
- First notable macroeconomic data on Wednesday
On Wednesday, the USD/JPY rate traded above the combined support of hourly simple moving averages near the 111.20 level. Namely, it remained largely unchanged from yesterday and had broken the medium term ascending pattern.
The Census Bureau released US Core Durable Goods Orders data that came lower-than-expected of 0.2%,compared with the forecasted 0.5% . The data release showed traders that the change in the total value of new purchase orders placed with manufacturers for durable goods was lower than expected this time.
Jerome Powell, the chairman of the Federal Reserve said: " I see the current path of gradually raising interest rates as the [Federal Open Market Committee's] approach to taking seriously both of these risks, while inflation has recently moved up near 2%, we have seen no clear sign of acceleration above 2%, and there does not seem to be an elevated risk of overheating."
Three notable releases during the week
It is the last week of the month, due to that reason there are almost no notable events scheduled for the most part of the week, which might cause large fluctuations in the currency markets.
On Wednesday, the US Preliminary GDP will be released at 12:30 GMT. The data, in theory, should provide a large reaction in the financial markets. Live event cover on the Dukascopy Webinar platform by Dukascopy Analytics will start at 12:20 GMT.
In addition, the weekly US Crude Oil Inventories data release will be published at 14:30 GMT, which has given bounces of at least 0.5 USD or 50 base points throughout the summer. Although, note that two times the data release disappointed macroeconomic release traders.
The week's last notable event will be the publication of the monthly Canadian GDP at 12:30 on Thursday. This data set is set to give the largest reaction from all of the releases, as CAD GDP has been constantly giving a reaction of at least 40 base points each month on the USD/CAD.
USD/JPY remains near 111.20
The USD/JPY was neutral, as during the whole week fluctuating at the 111.20 level. The currency pair passed the 55-hour simple moving average's resistance on Tuesday and was experiencing the 55– hour SMA support during the Wednesday's morning hours.Moreover, the 55-hour and 100-hour SMAs crossed each other during Tuesday's trading session flashing bullish signals for traders. A new trend line is created facing sideways direction.
The USD/JPY rate change is unpredictable due to NAFTA agreement, which may influence the rate to go any direction at any time. Watch out for technical break outs.
Hourly Chart
The USD/JPY chart just like many other USD charts has passed a notable long term level. Namely, the upper trend line of a long term descending pattern has been broken. Due to that reason a full review of the pair is set to be conducted, as soon as the currency swing to the upside ends and a new reference point is available.
Daily chart
The Swiss Foreign Exchange sentiment was 56% long during the morning hours. On Tuesday, the sentiment was almost neutral.
In the meantime, trader set up orders were still in the neutral zone. 51% of all orders were set to buy on Wednesday.
59% of Saxo Bank traders are short today. Meanwhile, OANDA traders are almost neutral, as the brokerage's clients are 52% long.
It can be clearly seen that the global forex market participants are unsure what will be the next move on the charts of the USD/JPY, as the bears and bulls are almost balanced.
Spreads (avg, pip) / Trading volume / Volatility