- SWFX market sentiment is 64% bullish
- Pending orders in the 100-pip range are 50% to BUY
- Empty start to the week for fundamentals
The Buck has just kept gaining ground against the Japanese Yen. On Monday the currency pair even managed to pass the medium term resistance, which was spotted on Friday.
The Census Bureau released the Building Permits data that came out slightly better-than-expected and instead of the forecast of 1.33M, the residential building permits grew by 1.35M in the period of March.
Building Permits rose by 2.5% annually, reaching the 1.354M growth pace, thus signaling how much of a construction is in the process. Moreover, single-family house building has retained close to the utmost levels ever since the recession began.
Empty start of the week for the US Dollar pairs
The weeks is set to start almost empty for fundamental macroeconomic data release traders. The reason is that on Monday the only worth mentioning release was the publication of the US Existing Home Sales data. The event was set to occur at 14:00 GMT. However, it will not be covered by the bank's analysts on the Dukascopy webinar platform.
USD/JPY opens near trend line
The US Dollar continued its fourth day of appreciation against the Yen on Friday. Despite showing high volatility, the pair nevertheless closed the session with a slight 32-pip gain.The Greenback opened considerably higher—at the 107.80 level today, and remained near this mark during the following hours. Thus, the given currency was located near a trend-line this morning.
Technical indicators still remain bullish; however, a convergence between them and the price movement could point to a soon change in sentiment. Thus, even if an up-move occurs today, gains should be capped near the 38.20% Fibonacci retracement and the weekly R2 near 108.10.
Apart from the 55-hour SMA and a channel line near 107.50, a decline might be stopped solely by the 100– and 200-hour SMAs at 107.30.
Hourly Chart
There is something very notable occurring on the daily timeframe's chart. Namely, the pair has broken through the previously drawn long term resistance line.
Daily chart
SWFX traders have increased their bullish outlook, as 64% of open positions were bullish during the morning hours. Trader set up orders are likewise bullish with 59% of pending orders being to buy the Greenback.
Meanwhile, the market sentiment of OANDA traders remains strongly bullish with 67% long positions. In addition, Saxo bank traders are 58% long on this pair.
Spreads (avg, pip) / Trading volume / Volatility