- SWFX market sentiment is 60% bearish (-1%)
- 51% of pending orders in the 100-pip range are to BUY the Greenback
- Upside target for today around 113.10
- Upcoming events: US Unemployment Claims, Chicago PMI
Contracts to purchase previously owned houses increased in November, supported by the job growth in the strengthening US economy.
The National Association of Realtors states that pending home sales indicator rose to 109.5 points to show a 0.2% gain for the month. The real estate market restored some momentum after inactivity for much of 2017 due shortage of inventory, which caused an increase in prices, and a lack of both land and labour.
Quiet session
Thursday's trading session will be relatively calm, as only two fundamentals are scheduled for today, namely, the weekly US Unemployment Claims and Chicago Purchasing Managers' Index to be released at 1330GMT and 1445GMT, respectively.
USD/JPY plunges amid solid fundamentals from Japan
The US Dollar extended its losses against the Japanese Yen for the fourth consecutive session. The pair managed to remain near the 100– and 55-hour SMAs on Wednesday.This rather still momentum sideways was disrupted early in this session when the rate, driven primarily by globally weaker US Dollar and solid fundamentals from Japan, dashed through the combined support of the 200-hour SMA and the 50.0% Fibonacci retracement and thus had reached the monthly PP circa 112.70 a few hours later.
The bearish sentiment might still prevail during the following hours, but the overall direction in this session should be tended northwards. It is expected that the pair retests the 113.00 area; however, it is yet to be seen if the 200-hour SMA is breached.
Hourly chart
Even though USD/JPY closed with gains on Wednesday, the pair failed to leave the 113.20/40 area that had confined it for the previous four sessions.
Meanwhile, the Greenback had plunged 65 pips by Thursday morning, thus breaching the weekly PP and the 55-day SMA along the way. It is expected that the pair remains in the 112.70/113.10 range in this session.
Daily chart
SWFX market sentiment is bearish, as 60% of open positons are short (-1%). Meanwhile, 55% of pending orders are to buy the US Dollar (+1%).
OANDA traders are bearish on the pair, as they are holding 52% short positions in this session (-3%). Market sentiment of Saxo Bank clients is at equilibrium on Thursday.