- SWFX market sentiment was 57% short during the morning hours
- 57% of pending orders in the 100-pip are to BUY
- Next notable event on Friday
On Thursday morning the US Dollar booked a new low level against the Japanese Yen. Namely, the 109,40 mark was touched before the rate slightly surged to the upside.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
Next data on Friday
The whole week has been empty for US data releases, and it will be like that until Friday, when at 12:20 GMT the Dukascopy Analytics will begin the cover of the US Durable Goods release. The data is set to be released at 12:30 GMT. Moreover, the event will occur during the middle of Friday's Analytics webinar that will begin at 12:00 GMT.
USD/JPY weak after strong decline
Any technical signals about USD/JPY's possible direction on Wednesday were shuttered by a 1.17% plunge during the morning hours. This massive decline was caused primarily by global geopolitical tensions which shifted risk-averse investors to the Yen as a save-haven currency.Bulls managed to overtake the market for a few hours, but their gains were once again erased later in the evening. By Thursday morning, USD/JPY was trading at the 109.50 mark.
Technical indicators converging with the current price movement suggests that a bullish reversal might be under way. The daily high should be the combined resistance of the 200– and 55-hour SMAs and the weekly PP at 110.40. In case bears prevail, the Greenback should not fall below the 109.00 level.
Hourly Chart
By analysing the daily chart, it was assessed that the US Dollar will continue to gain against the Japanese Yen. However, the various support levels near the 110.20-110.35 zone did not hold their ground on Wednesday.
Instead the rate plummeted through the support cluster. Due to that reason after the fundamental shifts have ended, another look at the larger scale situation will be conducted.
Daily chart
SWFX traders remain bearish on the USD/JPY pair, as 57% of open positions were short. That is a two percent increase, compared to Wednesday. That indicates that the retail traders have stopped selling the pair.
Meanwhile, trader set up orders are bullish with 57% of them being set to buy the Greenback. Most likely in an effort to close the large amount of short positions, as a short position's take profit or stop loss are buy orders.
The market sentiment of OANDA traders have decreased their bullish sentiment, as 53% of them holding long positions. On Wednesday the percentage was at 56%. In addition, the number of long positions of Saxo bank traders is 54%.
Spreads (avg, pip) / Trading volume / Volatility