- SWFX market sentiment is 58% bearish (-2%)
- 52% of pending orders in the 100-pip range are to BUY the Greenback
- Upside target for today around 113.00
- Bank Holiday in Japan
Factory activity in Chicago strengthened again by the end of the year, according to the MNI survey.
Market News International stated that its PMI of manufacturing sector in Chicago jumped to 67.6 in December, after 63.9 reading in the previous month. The survey also showed that businesses were shoring the stock level to support lead times and prepare for next year's product launches. However, the employment rate decreased, but remained higher than in post-crisis times.
Quiet session
This session will be quiet in terms of data releases. Banks in Japan will be closed for the following two days. Meanwhile, there are no notable fundamentals from the US.
USD/JPY points to recovery
Following a 40-pip plunge during the first half of Friday, the pair managed to recover some of its lost positions during the following hours. However, the strong resistance of the 55-hour SMA did not allow to surpass the 112.80 mark, thus leaving the rate lingering slightly above the monthly PP by Tuesday morning.It is likely that the bullish sentiment prevails in this session which could push the US Dollar up to the weekly PP, the 100-hour SMA and the upper trend line breached on December 28 circa 113.00.
Given that this area is likewise reinforced by the 55-day SMA, bulls could fail to overcome this psychological level. In terms of downward pressure, the US Dollar is supported by the weekly S1 at 112.32.
Hourly chart
The bearish sentiment that has prevailed during the previous three trading sessions has moved the rate closer to the lower boundary of a five-month ascending channel circa 112.20. However, the rate still has to overcome the support of the weekly S1 at 112.32 to reach this line.
It is expected that the rate closes this session with slight losses somewhere between the monthly PP at 112.63 and the aforementioned weekly S1.
Daily chart
SWFX market sentiment is bearish, as 58% of open positons are short (-2%). Meanwhile, 56% of pending orders are to buy the US Dollar (-1%).
OANDA traders are slightly bearish on the pair, as they are holding 51% short positions in this session (-2%). Market sentiment of Saxo Bank is at equilibrium.