- Swiss market sentiment is 54% bearish
- 57% of pending orders in the 100-pip range are set to BUY
- Two data releases during the day
On Wednesday, the USD/JPY rate regained some of the previous lost ground and retraced back above the 110.00 mark. Meanwhile, note that the pair was supported by a strong cluster of levels of significance near the 109.90 level.
The Census Bureau released Retail Sales data that came better-than-expected of 0.5% to forecasted 0.1%. The data represents a good sign for the Greenback, as well as an increase of total value of sales at the retail level.
Michael Feroli, an economist at JPMorgan Chase said: "It gives us comfort that consumers are nowhere near to being as overstretched as they were in the years heading into the Great Recession".
Two notable events
The two first empty trading session of the week are over. Macroeconomic data will be once more released and cause sudden bounced in the financial markets. However, they will not influence the US Dollar.
At 12:30 GMT the Canadian Retail Sales will be published. This data release is expected to cause a widening of the trading range of 70 base points. The data release will be covered by Dukascopy Analytics on the bank's live webinar. The event will start at 12:20 GMT.
Moreover, there will be another notable data release occurring during the day. At 14:30 GMT the US Crude Oil Inventories data will be published. The data has caused fluctuations of at least 50 cents in oil prices throughout this summer. The release cover by Dukascopy Analytics will begin at 14:20 GMT.
USD/JPY reaches 100-hour SMA
The Japanese Yen depreciated against the US Dollar during the morning hours. The main pair reached the 100– hour simple moving average at midnight to Wednesday which paused the surge. In general, the US Dollar recovered 47 pips or 0.43%.On Wednesday morning, the main pair was at 110.40 showing a bullish signal. The 55– hour simple moving average was the support for the currency pair for the day. The simple moving average was also set to be strengthened by a monthly pivot point just above the SMA.
The upward momentum is likely to continue during the session reaching the 200-hour simple moving average.
Hourly Chart
On Tuesday, Dukascopy Analytics drew the possible borders of a dominant descending channel pattern. However, note that the lower trend line of the pattern has not been confirmed properly.
Meanwhile, it is more important to note that the 100 and 200-day simple moving averages were supporting the currency rate during the recent decline and might have been one of the many reasons, why a surge took place.
Daily chart
Swiss Foreign Exchange sentiment was 54% short on Wednesday morning.
In the meantime, trader set up orders remain in the neutral zone, as 52% of pending commands are long. Previously, 51% of orders were short.
Saxo Bank traders are 61% long on the pair. Meanwhile, OANDA traders are 51% long on the pair.
It can be clearly seen that the global forex market participants are unsure what will be the next move on the charts of the USD/JPY, as the bears and bulls are almost balanced.
Spreads (avg, pip) / Trading volume / Volatility