- SWFX market sentiment is neutral
- 65% of pending orders in the 100-pip range are to BUY the Greenback
- Notable support near 110.40
- Empty first half of the week for fundamentals
The Greenback had paused its decline against the Japanese Yen. The stop resulted in a short lived consolidation. However, by the middle of Tuesday's trading session the depreciation of the US Dollar against the Japanese Yen had resumed.
The bearish pressure continued to prevail on Monday, thus sending USD/JPY towards the combined support of the monthly S2 and the weekly S1 circa 110.30.
The US retail sales rose in December, as consumers bought more goods and the previous month's figures were revised up, indicating that the country's economy finished 2017 with solid momentum. The Commerce Department stated that retail sales increased 0.4% in December, following an upwardly revised 0.9% gain previously.
Empty start of the week
The economic calendar for the week in regards to the strength of the USD/JPY currency pair is empty until Thursday. Due to that reason traders are most likely going to concentrate on technical aspects of currency fluctuation analysis.
However, swing traders should tune in for various swing trades scheduled to be covered by the Dukascopy research team during the week.
USD/JPY returns near 55-hour SMA
The bearish pressure continued to prevail on Monday, thus sending USD/JPY towards the combined support of the monthly S2 and the weekly S1 circa 110.30.Due to this cluster, the Greenback failed to reach the bottom boundary of a four-month channel circa 110.00. The test of this support was followed by a slight period of recovery until the rate reached the 55-hour SMA.
Technical indicators suggest that the rate is likely to fail today, especially if its northern barrier is likewise reinforced by the 100-hour moving average.
Even if the rate breaches the 110.30 area, its subsequent fall should not exceed the aforementioned channel. The pair's movement would eventually lead to the breakout of a short-term descending channel and a possible surge.
Hourly chart
By looking at the daily chart one sees that the pair is approaching the support line of a dominant long term channel pattern. Namely, the support is located just below the 110.00 mark. Due to that reason it is expected that this decline of six consecutive trading sessions might end at that level. Afterwards, a rebound and a formation of a new medium term pattern would occur.
Daily chart
The bearish SWFX market sentiment has slightly weakened today with the sentiment being neutral. Meanwhile, 68% of pending orders are to buy the Greenback (+4%).
The market sentiment of OANDA traders remains bullish with 60% long positions (+7%). Meanwhile, Saxo Bank clients are likewise bullish, as 53% of open positions are long
Spreads (avg, pip) / Trading volume / Volatility