- SWFX market sentiment is 69% bullish (-4%)
- Pending orders in the 100-pip range are at equilibrium
- Bank holiday in US
The Labour Department revealed that the US Producer Price Index climbed 0.4% in January, as forecasted.
Data backed-up its growth rate with a strong increase in health care and gasoline prices, which moved up 0.7% and 7.1%, respectively.
The PPI report fuelled expectations that price growth would accelerate in 2018 even with weaker correlation with inflation of consumer prices. Inflation is likely to be lifted towards the Fed's 2% target, owing to tightening job market, weak US Dollar, as well as larger government spending and tax reform.
Quiet session
No fundamentals are scheduled for this session. Banks in the United States are closed due to President's Day.
USD/JPY tries to recover after 15-month low
The US Dollar managed to regain some lost positions against the Japanese Yen on Friday, thus reversing its period of decline apparent since February 2. By Monday morning, the Greenback had surpassed the 55-hour SMA and was moving towards the weekly PP, the monthly S1 and the 100-hour SMA circa 107.00.Technical indicators on the daily time-frame suggest that the pair could edge higher this week, as bulls might want to use this opportunity to push the rate away from its 2017/2018 low of 105.70 reached early on Friday. Strong gains, however, could be limited in this session due to the strong resistance at 107.00.
The ultimate daily high should be the 200-hour SMA at 108.00 and the low—the 105.00 mark.
Hourly Chart
The US Dollar continues to trade in a narrow channel against the Yen in force since late December, 2017. The pair fell to its lower boundary last week and has since shown some signs of recovery. Daily technical indicators are likewise supportive of a possible surge within the following few days.
Daily chart
SWFX traders are on the long side, as 69% of open positions were bullish during the morning hours (-4%). In addition, 62% of pending orders are to buy the Greenback.
Meanwhile, the market sentiment of OANDA traders remains strongly bullish with 74% long positions.
Spreads (avg, pip) / Trading volume / Volatility