- SWFX market sentiment is 68% bullish
- Pending orders in the 100-pip range are 54% to BUY
- Prelim UoM Consumer Sentiment
After a short period of decline, the USD/JPY exchange rate picked up bullish momentum. The currency pair is gradually moving toward the 108.00 mark
The Bureau of Labor Statistics revealed lower-than-expected data in Consumer Price Index in March. On month-to-month basis CPI showed its first decrease in 10 months by 0.1%, compared to a growth of 0.2% in the prior month.
However, economists had forecast it to stay unchanged; the drop was caused by the decline in gasoline costs. Moreover, rising prices for rental accommodation and healthcare continued to put pressure on underlying inflation.
Prelim UoM Consumer Sentiment
The main event for today is the Prelim UoM Consumer Sentiment, which is considered to be a minor US fundamental event.
However, Dukascopy research team are keeping close eyes of situation on Syria regarding US military action.
USD/JPY breakout from SMAs
Being stranded by the 55-, 100– and 200-hour SMAs, USD/JPY entered a minor period of consolidation on Thursday morning. Strong bullish momentum mid-session contributed to a northern breakout and subsequently led the pair even up to the 107.50 mark where the monthly R1 is located.It is likely that the US continues to appreciate against the Yen during the following hours. The nearest resistance is set by the weekly R1 and the 38.20% Fibo retracement at 107.75 and 108.08, respectively.
However, bulls might soon exhaust their strength and go for a minor correction during the second part of the day, as technical indicators are gradually moving towards the overbought territory. This decline is unlikely to surpass 107.00 due to several important support levels being located there.
Hourly Chart
On the daily chart a breakout had occurred through the upper boundary of a down trend-line
Daily chart
SWFX traders are still on the long side, as 68% of open positions remained bullish during the morning hours. Furthermore, trader set up orders remain bullish, as 54% of trader set up orders were to buy the US Dollar against the Japanese Yen.
Meanwhile, the market sentiment of OANDA traders remains strongly bullish with 68% long positions. In addition, Saxo bank traders are 56% long in regards to this pair.
Spreads (avg, pip) / Trading volume / Volatility