- SWFX market sentiment is 59% bearish (-2%)
- 58% of pending orders in the 100-pip range are to SELL
- Empty economic calendar
USD/JPY fluctuates slightly above the senior channel for the second consecutive session.
The Energy Information Administration released the US Crude Levels data that came out better-than-expected of 3.8M, compare to forecasted negative 2.6M.
The senior analyst at Dukascopy says: " It was a usual release of US Crude Oil Inventories just like during the rest of the July. It caused a bounce in the range of 40-60 base points."
Quiet session today
Tuesday's trading session includes no significant data releases that could affect the pair; thus, it could remain trading with low volatility.
USD/JPY fails to accelerate
Monday's trading session has not introduced any changes to USD/JPY's positioning which was mainly due to the 55–hour and 200-period (4H) SMAs surrounding the rate. As a result, the expected test of the upper boundary of the junior channel did not occur.It is likely that the 200-period SMA proves to be stronger than its 55-hour counterpart, thus putting more weighting on the bullish scenario. The 55– and 100-hour SMAs and the weekly PP must be surpassed for the Greenback to fully accelerate towards the monthly PP at 111.80.
In case the 200-period SMA is stronger, the pair is likely to aim for the psychological 111.00 level and later for the weekly S1 at 110.65.
Hourly Chart
USD/JPY found resistance at the 113.00 mark in July – a move which was followed by a decline down to 111.00.
Technical indicators remain bearish for the following sessions. It means that the Greenback should approach the strong support cluster formed by the 200-day SMA and the 61.80% Fibonacci retracement at 110.00. This area is likely to work as a strong barrier that could in turn activate bulls in the medium term.
Daily chart
Traders of the Swiss Foreign Exchange continue to short the USD/JPY currency pair which is apparent by 59% bearish positions. This number, however, shows a slight improvement for bulls if compared with the previous session. Likewise, 53% of pending orders are to short the Sterling (-8%).
OANDA traders are bullish, as 56% of them are holding long positions. On the contrary, Saxo bank is dominated by bears with 56% of positions being short (+3%).
In general, the overall sentiment of the USD/JPY is mixed.
Spreads (avg, pip) / Trading volume / Volatility