- SWFX market sentiment was 54% short during the morning hours
- 51% of pending orders in the 100-pip are to SELL
- US Durable Goods Orders at 12:30 GMT
The Friday's trading session seemed to book the end of the US Dollar's decline against the Japanese Yen. Namely, the 109.00 level acted as a support and managed to stop the currency exchange rates decline during the late hours of Thursday's trading session.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
US Data release of the week has come
The whole week has been empty for US data releases, and it will be like that until 12:20 GMT, when the Dukascopy Analytics will begin the cover of the US Durable Goods release. The data is set to be released at 12:30 GMT. Moreover, the event will occur during the middle of Friday's Analytics webinar that will begin at 12:00 GMT.
USD/JPY trades in channel
The US Dollar continues to trade in a descending channel against the Japanese Yen for the third consecutive session. Despite some fluctuations yesterday, the pair had returned at its Thursday opening level by this morning.It is likely that the pair tries to move above the 55-hour SMA at 109.80 today. This area, however, is expected to hinder or even halt the pair, as it is likewise reinforced by the 100-period SMA on the 4H chart. In case this level is surpassed, the following resistance is formed by the 100– and 200-hour SMAs and the weekly PP at 110.35.
The bearish scenario should likewise be considered. In case no fundamental events introduce volatility in the market, the Greenback should remain trading along the 55-hour SMA. This line would push the pair lower but without breaching the psychological 108.00 level.
Hourly Chart
On the daily chart it can be spotted that the 109.00 mark played a significant role in stopping the currency rate's decline. However, there are other notable levels if significance at play.
Namely, the 50.00% Fibonacci retracement level at the 109.14 mark was providing support on Friday. Meanwhile, the weekly S1 at 109.63 was providing resistance to the US Dollar against the Yen.
Daily chart
SWFX traders remain bearish on the USD/JPY pair, as 54% of open positions were short. Compared to the previous 57%, the new data indicates that the Swiss retail traders have continued to close their short positions.
Meanwhile, trader set up orders are bullish with 55% of them being set to buy the Greenback. Most likely in an effort to close the large amount of short positions, as a short position's take profit or stop loss are buy orders. They have been mostly set to buy since the decline of the Buck began.
The market sentiment of OANDA traders have increased their bullish sentiment, as 56% of them holding long positions. On Wednesday the percentage was also at 56%. In addition, the number of long positions of Saxo bank traders is 54%.
Spreads (avg, pip) / Trading volume / Volatility