- SWFX market sentiment is 54% bullish
- 53% of pending orders in the 100-pip are to SELL
- No major US fundamental releases
The first part of Monday's trading session was relatively calm of the USD/JPY currency exchange rate. Meanwhile, technical indicators suggest a strong decline in the rate today.
The Bureau of Economic Analysis released Preliminary Gross Domestic Product data that came out lower-than-expected of 2.2%, compared to the 2.5% in the previous period.
"The revision to headline GDP growth was small, as were most of the revisions to GDP components. The standouts were weaker inventory investment, weaker residential investment and stronger business investment," said Chris Low of FTN Financial Group.
No major US fundamental releases
After the busy Friday's session, the economic calendar is almost empty. However, for any financial instrument, which involves the US Dollar is totally empty.
USD/JPY strong bearish signal today
Following two sessions of sideways movement, the Greenback eventually managed accelerated against the Yen on Friday. The pair found support at the 55-hour SMA early in the day and subsequently dashed through the 100– and 200-hour SMAs and the 50.00% Fibonacci retracement.The pair stopped at the 100-period (4H) SMA late on Friday and was trading at this line early today, as well. This has left the rate in a narrow 109.80/20 range. Even though technical indicators are located in the overbought territory and thus are pointing to a decline today, this fall is unlikely to be significant due to the 200-hour and 200-period (4H) SMAs, among other support levels, restricting the 109.20/30 area.
In terms of the upside, the Greenback should find resistance at the weekly R1 and the 61.80% Fibo at 110.20.
Hourly Chart
On Friday it could be clearly visible that the currency exchange rate was in the process of a rebound against the lower trend line of a dominant ascending channel pattern.
The next target for the rate on Friday was the resistance of the weekly PP, which was located at the 109.45 mark.
Meanwhile, one needed to take into account that the currency exchange rate had broken the resistance of the 50.00% Fibonacci retracement level at the 109.10 mark. Due to that reason the ex-resistance was set to act as support.
Daily chart
On Monday, 54% of open Swiss Foreign Exchange USD/JPY positions were long. Previously, the sentiment was 52% bearish.
Meanwhile, trader set up orders are bearsih with 53% of them being set to sell the Greenback.
The order buy proportion has been growing each day, as the currency exchange rate gains more ground, confirming that it a rebound is occurring on the larger scale.
The market sentiment of OANDA traders has been constantly largely bullish, as 60% of their traders are holding long positions. In addition, the proportion of long positions of Saxo bank traders is 57%.
Spreads (avg, pip) / Trading volume / Volatility