- SWFX market sentiment is 68% bearish (+4%)
- 53% of pending orders in the 100-pip range are to SELL
- Bank Holiday in the US
- Upcoming events: US Preliminary UoM Consumer Sentiment
The Japanese Yen strengthened against the Greenback on the upbeat Japan Eco Watcher's survey. The USD/JPY fell 26 base points or 0.23% to the 113.57 mark, returning to the levels close to Wednesday lows.
The Cabinet Office revealed on Thursday morning that Japanese Eco Watchers' Index, the measure of peoples' evaluation of the country's economy, climbed to the highest level since March 2014. The Economy Watcher's survey showed that the Current Index climbed to 52.2 points in October, surprising forecasts for a drop to 50.8, while the Outlook Index rose notably to the highest level in 46 months of 54.9 in the same period. The economic growth of Japan was expected to cool down in Q3, though experts suggested any weakening to be transitory.
Quiet session
Banks in the US are closed in this session in observance of Veterans Day. However, the University of Michigan is still to publish its Preliminary Consume Sentiment at 1500GMT.
USD/JPY rebounds from 113.17 In
In line with expectations, the Yen continued to gain value against the Dollar under pressure from the slipping 55-, 100- and 200-hour SMAs. On the one hand, the currency rate continues to fluctuate within the descending channel formation, which implies further movement in the southern direction.On the other hand, the combined support level set up by the monthly PP at 113.25 and the weekly S1 at 113.22 indicates that this trading session the exchange rate is likely to spend wavering between the 113.60 and 113.30 marks.
The situation can be altered during the day amid the news coming from the APEC summit where Presidents Trump and Putin are expected to have a meeting.
Hourly chart
The US Dollar was pressured from below by the monthly PP and the weekly S1 near the 113.20 mark on Thursday and thus failed to move past this area. The given support was already re-tested early on Friday, but it proved its strength once again.
Given that a relatively quiet trading session is expected today, the 133.80/20 range should hold.
Daily chart`
SWFX market sentiment has changed by four percentage points on Friday, as 68% of traders are holding short positions (+4%). Meanwhile, 51% of pending orders are now to sell the Greenback (+1%).
The bearish market sentiment of OANDA traders has strengthened in this session, as 56% of open positions are short (+1%). Meanwhile, the number of open positions of Saxo Bank clients is 52% long (+1%).