- SWFX market sentiment is 59% bullish
- Pending orders in the 100-pip range are 57% to BUY
- CB Consumer Confidence on Tuesday
After the massive surge of the US Dollar against the Japanese Yen, the pair seemed to have revealed the pattern, which represents the rate's recent surge. Due to that reason and an upcoming notable macroeconomic data release Dukascopy Analytics basic methods are once more relevant.
The Census Bureau released the Building Permits data that came out slightly better-than-expected and instead of the forecast of 1.33M, the residential building permits grew by 1.35M in the period of March.
Building Permits rose by 2.5% annually, reaching the 1.354M growth pace, thus signaling how much of a construction is in the process. Moreover, single-family house building has retained close to the utmost levels ever since the recession began.
First release of the week
First notable data release of this rather quiet week is set to occur today. Namely, the CB Consumer Confidence is set to be released at 14:00 GMT. The data release coverage will begin at 13:50 GMT on the bank's live webinar platform.
All in all, the data release is expected to cause a rather medium reaction. However, due to the economic calendars being empty, it will be covered.
USD/JPY allays after surge
The US Dollar accelerated significantly against the Japanese Yen on Monday, thus closing the session with a 93-pip gain. This strong upside momentum prevailed mid-day as a result of which several significant resistance areas were breached, including the weekly R2 and a trend-line at 108.45.The pair might still edge higher during the early hours of the European session towards the weekly R3 and the 50.0% Fibonacci retracement near 109.10. However, this strong up-move should not be sustainable for long, thus allowing bears to lead the second part of the session.
A significant support cluster is formed by the 55-hour SMA, the weekly R1 and the 38.20% Fibonacci retracement at 108.10. The 100– and 200-hour SMAs are likewise located nearby.
Hourly Chart
There is something very notable occurring on the daily timeframe's chart. Namely, the pair has broken through the previously drawn long term resistance line.
Due to that reason technical chartists need to wait for the rate to provide a new reference point and only afterwards measure the risk to return trade-offs by drawing new medium and long term patterns.
Daily chart
SWFX traders remain long on the USD/JPY, as 60% of open positions were bullish during the morning hours. Trader set up orders are likewise bullish with 62% of pending orders being set to buy the Greenback.
Meanwhile, the market sentiment of OANDA traders remains strongly bullish with 61% long positions. In addition, Saxo bank traders are 58% long on this pair.
Spreads (avg, pip) / Trading volume / Volatility