- SWFX market sentiment is 53% bearish
- 65% of pending orders in the 100-pip are set to BUY
- Empty week for notable macroeconomic releases
A two day surge, which began on June 19, continued on Thursday, as the US Dollar reached higher against the Japanese Yen.However, the currency exchange rate had met once more with the resistance levels near the 110.80 mark.
The Census Bureau released Residential Building Permits data that came lower-than-expected with a forecast of 1.35M in May, and lower from the previous period.
A survey showed that builders are: "..increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability."
Note Bank of England's event
There are no notable events set to occur during the rest of the week, which might cause shifts in the value of the US Dollar and subsequently the financial instruments that involve the Buck.
However, tune in to the bank's online webinar platform at 11:50 GMT when the coverage of the Bank of England's Official Bank Rate announcement occurs. The event is surely going to cause an increase of volatility in the British Pound.
USD/JPY tests trend-line
On Wednesday morning, the US Dollar tested the combined resistance of the 55-, 100– and 200-hour SMAs and the 61.80% Fibonacci retracement. This area hindered USD/JPY for some time until strong bullish sentiment pushed it even higher towards the monthly R1 and a four-week trend-line at 110.80.Some upside potential is still apparent in the market, as technical indicators have not yet reached the overbought territory. Gains are expected to be capped near the weekly R1 at 111.30. Conversely, the pair respecting the above trend-line should return it to the massive support cluster at 110.20.
Given the rather calm day in terms of data releases, it is unlikely that this barrier is breached to the downside. In general, the pair could be located near 111.00 on Friday morning.
Hourly Chart
The daily chart revealed that the currency exchange rate was still going higher, as it was supported by the 200-day simple moving average, which was strengthening a strong support cluster. Namely, there is a cluster made up of the SMA, the weekly pivot point at 110.31 and the 61.80% Fibonacci retracement level at 110.20 mark.
Most likely the currency pair is set to surge until August, as it is set to reach for a dominant resistance line, which is located above the 111.50 mark.
Daily chart
On Thursday, 53% open positions of SWFX market traders were short. It was a decline compared to the 59% at the start of the week.
Meanwhile, trader set up orders are bullish with 55% of them being set to buy the Greenback.
These facts combined indicate that the Swiss Retail Traders are expecting a surge, and want to take advantage of it. Most likely it would occur after breaking the resistance near the 110.80 mark.
OANDA traders are bullish on the pair with 55% of open positions are going long on the USD/JPY pair today. Meanwhile, Saxo Bank traders are almost neutral, as only 51% of open positions are long.
Spreads (avg, pip) / Trading volume / Volatility