- SWFX market sentiment is 54% bearish
- 58% of pending orders in the 100-pip are to BUY
- Prelim UoM Consumer sentiment
The US Dollar continues to maintain it ascending channel against the Japanese Yen.
The Bureau of Labor Statistics released two datasets simultaneously from which Consumer Price Index came out lower-than-expected of 0.2%, compared to negative 0.1% in the previous period. Similarly, Core Consumer Price Index too came out lower-than-expected of 0.1%, compared to 0.2% in the previous month.
The Department of Labor released Unemployment Claims data at the same time, which came out better-than-expected of 211K.
Minor US data release
No major fundamental event scheduled for today that could impact the strength of the currency pairs and commodities.
USD/JPY stranded between SMAs
The weekly R1 at 109.90 proved to be an unbreakable resistance for USD/JPY during the previous session; thus, the pair was pressured down to the bottom boundary of a five-week channel. This fall was limited by the 55-, 100– and 200-hour SMAs which have since restricted solid advances either direction.By the time of this analysis, the US Dollar had surpass the two longer-term SMAs and was moving towards the 109.70 level. Technical indicators suggest that it could still push higher, thus setting the 61.80% Fibo at 110.20 as today's high.
However, it should still be taken into account that the rate could continue trading in line with the prevailing wedge pattern and therefore fall down to its lower boundary located at 109.00. This bearish scenario should occur if 109.30 is breached.
Hourly Chart
On the daily chart, The weekly pivot point at 109.90 prevented the USD/JPY pair to gain further strength.
Daily chart
SWFX traders are bearish on the US Dollar, as 54% of open positions were short during the morning hours. Set up orders are bullish with 58% of them being set to buy the Greenback.
The market sentiment of OANDA traders is strongly bullish with 57% of them holding long positions. In addition, the number of long positions of Saxo bank traders is 58%.
Spreads (avg, pip) / Trading volume / Volatility