- SWFX market sentiment is 66% bullish
- 58% of pending orders in the 100-pip range are set to BUY
- Pair remains below 109.00 level
- One notable release on Tuesday
The US Dollar remained near Monday's trading levels on Tuesday morning. However, the rate had failed to pass a resistance cluster near the 109.00 level, where SMA's and a monthly pivot point are located at.
The US economy revealed weaker-than-anticipated expansion pace in Q4, as solid consumer spending resulted in an increase in imports. The Commerce Department stated that the US gross domestic product rose at a 2.6% yearly rate in the December quarter, compared with 3.2% in the Q3, being restrained by an expanding trade deficit and moderate inventory accumulation.
Meanwhile, durable goods orders rose 2.8% in December, with the US manufacturers benefiting from a solid global growth and a weaker currency, supporting the country's exports.
CB Consumer Confidence
On Tuesday the first significant fundamental macroeconomic event is set to occur. Namely the CB Consumer Confidence is set to be released at 15:00 GMT.
The data release is scheduled to be covered by the Dukascopy Research team on the live webinar platform of the bank. One can join the webinar by clicking on the notification on the trading platform, which should pop up ten minutes before the release. Or find the webinar platform on the bank's webpage in the TV section or just google it.
USD/JPY near strong resistance
Following a strong period of decline during the previous sessions, the US Dollar managed to regain some of its lost positions on Monday.Gains, however, were largely limited due to the notable resistance of the 55– and 100-hour SMAs and the monthly S3 located nearby.
Technical indicators favour another fall towards the distant weekly S1 at 107.53 during this session. In case fundamentals fail provide strong upside momentum, this is the most probable scenario.
By and large, the US Dollar should soon accelerate against the Yen and return near the 109.50 mark where the upper boundary of a six-week descending channel is located.
Hourly chart
By looking at the daily chart one can see that the situation has changed a lot. It can be seen that the next notable supporting trend line is located below the 108.00 mark.
In addition, in the near future the pair will be slowed down by the lower trend line of a junior channel down pattern.
Meanwhile, last week we expected to see this week's calculated pivot points. In contradiction to what was expected, there are no notable support levels, which might slow down the fall of the US Dollar against the Yen.
Daily chart
SWFX traders are on the long side, as 66% of open positions were bullish during the morning hours. Meanwhile, 63% of pending orders are to buy the Greenback.
The market sentiment of OANDA traders remains bullish with 67% long positions (-3%). Meanwhile, Saxo Bank clients are likewise bullish, as 55% of open positions are long
Spreads (avg, pip) / Trading volume / Volatility