- SWFX market sentiment is 69% bullish
- 51% of pending orders in the 100-pip range are set to SELL
- Pair approaches 110.00 mark
- US Employment data
The combined resistance of various level of significance near the 109.70 mark has failed to force the USD/JPY rate lower. Due to that reason on Friday it was expected that the currency exchange rate will surge above the 110.00 mark.
The US manufacturing activity weakened in January due to a decrease in new orders, though an unexpected fall in the number of Americans filing for unemployment aid last week indicated lingering job market strength, which could underpin bolster domestic demand.
The ISM stated that the US Manufacturing PMI decreased to 59.1 in January from 59.3 in the prior month. The other data showed notable gains in construction spending. Meanwhile, a decrease in worker productivity pointed to more difficult maintenance of strong expansion pace.
US Employment package
The week is set to end for the macroeconomic release swing traders with a package of US employment data. The data release will occur on 13:30 GMT and consist of three various data sets.
The release will be covered on the bank's webinar platform live. Join by clicking on the notification on the JForex platform or find the webinars in the TV section.
USD/JPY breaks out of pattern
The Greenback remained stable against the Yen on Thursday, as it failed to overcome the constraints of the 200-hour SMA and a seven-day resistance at 109.69. This price level and the dashed up-trend line has formed a short-term ascending triangle.It seems that the rate could be ready to breach this pattern to the upside, especially if the southern barrier is guarded by the weekly PP , the 55– and 200-hour SMAs circa 109.35.
Technical indicators are likewise supportive of this scenario, as they demonstrate that some upside potential still exists.
Apart from the 109.69 mark, the nearest resistance is set by the weekly PP and the monthly R1 near 110.35. This area is expected to be the daily high.
Hourly chart
In regards to the daily chart, it can be observed that the second speculated scenario has come into reality.
The pair has passed the resistance provided by the previously active long term descending channel's lower trend line.
Due to that reason the narrow ranged channel that represented the US Dollar's decline has been broken and the 110.30 mark is the next target.
Daily chart
SWFX traders are on the long side, as 69% of open positions were bullish during the morning hours. Meanwhile, 66% of pending orders are to buy the Greenback.
The market sentiment of OANDA traders remains bullish with 72% long positions. Meanwhile, Saxo Bank clients are likewise bullish, as 57% (-1%) of open positions are long
Spreads (avg, pip) / Trading volume / Volatility