- SWFX market sentiment was neutral on Monday
- 53% of pending orders in the 100-pip are set to SELL
- Weekly Overview Webinar at 12:00 GMT
The previously described dominant support of the USD/JPY currency exchange rate has done its job. The currency exchange rate jumped on Monday, as it reached back up to the 110.20 mark, where various resistance levels were located at.
The Bureau of Labor Statistics simultaneously released three data sets, where Average Hourly Earnings data that came out better-than-expected of 0.3%, compared to the 0.1% in the previous period.
Moreover, Non-Farm Employment Change data came out better-than expected of 223K, instead of economists forecast of 189K, and Unemployment Rate data came out to be less-than-expected of 3.8%.
Weekly calendar webinar
The only notable data release of the day passed this morning, as we caught a 40 base point reaction on the GBP/USD at 08:30 GMT. However, there is still work to do on Monday.
Namely, at 12:00 GMT the start of the week webinar will begin. During the webinar Dukascopy Analysts will analyse the economic calendar of the week and reveal this week's webinar schedule.
However, if one is interested to read about when the next notable data release of the covered pair is set to occur, look at Tuesday. At 12:30 GMT the US CPI data sets will be published. The cover of the release is set to start at 12:20 GMT.
USD/JPY hits strong barrier at 109.80
USD/JPY was trading in a neat channel down for last two sessions. Following a test of the more senior channel and the 55-period (4H) SMA mid-Friday, strong upside risks pushed the rate out of this short-term channel and towards the 109.80 mark where the 100-hour and 100-period (4H) SMAs are located.These moving averages might work as strong resistance, thus reversing the rate back down to the 200-hour SMA and the monthly PP at 109.40.
From technical point of view, the pair should continue its current up-move and target the upper channel line, the monthly R1 and the weekly R2 at 110.75 this week. Technical indicators are also bullish for this session, suggesting that the 109.80 level should eventually surrender.
Hourly Chart
If one looks at the daily chart, there are no surprises. The currency exchange rate clearly bounced off the support of the dominant ascending channel pattern.
The pair is set to once more make an attempt to pass the resistance cluster near the 110.20 mark. Meanwhile, note that the cluster has not lost its strength, as it was expected previously. The reason for that is the fact that the weekly R1 has joined the cluster in the place of the previous weekly resistance.
Daily chart
Swiss Foreign Exchange market sentiment has become neutral on Monday. Previously, on Friday the rate was 51% long.
Meanwhile, for the third consecutive trading session 54% of orders were set to buy.
This indicates that the surge did not occur due to the push provided by retail traders. Instead it was caused by the events of the G7 summit.
The market sentiment of OANDA traders have again increased their bullish sentiment, as 58% of their traders are holding long positions. Previously, 54% of positions were long. In addition, the proportion of long positions of Saxo bank traders is 53%.
Spreads (avg, pip) / Trading volume / Volatility