- SWFX market sentiment is 56% bearish
- 58% of pending orders in a 100-pip range are to sell
- Significant resistance is located at 112.00
- Upcoming events: US CB Consumer Confidence, US New Home Sales, FOMC Member Brainard and Fed Chair Yellen to speak
The USD/JPY exchange rate was little changed after the Bank of Japan's interest rate decision announcement. However, the further reaction on the Bank's press conference put the pair to a two-month high of 112.70, where the US Dollar strengthened against the Yen by more than 0.15%. Both events managed to keep USD/JPY above the 112.0 level, though the pair returned to the 111.80 area in the early Friday trading session.
However, the further reaction on the Bank's press conference put the pair to a two-month high of 112.70, where the US Dollar strengthened against the Yen by more than 0.15%. Both events managed to keep USD/JPY above the 112.0 level, though the pair returned to the 111.80 area in the early Friday trading session.
Yellen comes in focus on Tuesday
The main fundamental event in today's economic calendar is the speech ‘Inflation, Uncertainty, and Monetary Policy' delivered by the Chair of the Federal Reserve Janet Yellen at the National Association for Business Economic Annual Meeting at 1645GMT.
Before this event, however, there are other data released by the Unites States in this session, namely, the CB Consumer Confidence and New Home Sales for the month of August at 1400GMT. In addition, the Governor of the Federal Reserve Lael Brainard is set to deliver opening remarks at the Federal Reserve Board Conference at 1430GMT.
USD/JPY falls amid Kim-Trump hostile rhetoric
An increasing hawkish rhetoric between the United States and North Korea led to appreciation of the Yen by 63 basis points just in three hours. As a result, the pair broke through the 100-hour SMA as well as the weekly PP and ended up near the 200-hour SMA.Accordingly, today the currency rate might try using this downside momentum to slip to the area between the 111.38 and 111.26 levels. On the other hand, a number of factors indicate on presence of a new junior descending channel.
If this assumption is true, then the rate should not fall below the 111.40 mark. In contrast, the buck might use the above 200-hour SMA as a springboard to try to return at least to the weekly PP at 111.90.
Hourly chart
It seems that Monday's fall of the USD/JPY currency pair has finally confirmed that the rate is ready to move away from the upper boundary of a long-term wedge. The Greenback surpassed the 200-day SMA near the 112.15 mark and is heading towards a support cluster formed by the monthly R1, the 100-day SMA and the weekly S1 in the 111.10/111.30 area.
Daily chart
SWFX sentiment has turned bearish on the US Dollar, as the number of traders holding short positions is 56% (+6%). In addition, 57% of current pending orders are to sell the US Dollar (+3%).
OANDA traders are bullish on the Greenback, with 51% of its clients having long positions (-5%). In addition, 53% of Saxo Bank traders are likewise holding long positions on Tuesday (+1%).