- SWFX market sentiment was 54% bullish on Wednesday
- 54% of pending orders in the 100-pip are set to BUY
- US PPI data sets at 12:30 GMT
The Greenback continues to gain ground against the Japanese Yen, as the next resistance target had been reached on Wednesday. Namely, the 110.70 mark had been reached during the early hours of the day's trading.
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%.
US PPI at 12:30 GMT
On Wednesday the financial markets are set to experience a data release, which might cause notable fluctuations in currency exchange rates.
Namely, at 12:30 GMT the US PPI will be published. The data release will be covered by the Dukascopy analysts, and the live coverage on the bank's webinar platform will begin at 12:20 GMT. Moreover, it will be a part of a longer webinar, as at 12:00 GMT the weekly fundamental event review will occur.
However, there is set to occur a US Dollar's surge, as at 18:00 GMT the FOCM is set to make a rate hike. Due to that reason the demand for the Buck will grow and another resistance will be broken.
USD/JPY: bullish momentum eases
The US Dollar continues to strengthen against its Japanese counterpart for the third consecutive session. The pair managed to bounce off the weekly R1 and the 61.80% Fibonacci retracement and trade close to the weekly R2 and the monthly R1 on Wednesday morning.Technical indicators remain bullish, suggesting that the 110.75 area should be breached in this session. The following levels of significance are either the upper channel line or the weekly R3 at 111.00 and 111.22, respectively.
Meanwhile, the pair's trading range in the four-day ascending channel has diminished. This shows that the strong bullish sentiment which has prevailed since the beginning of this week is starting to ease. This might be an early indication of a reversal. The Greenback should find strong support near the 110.00 territory.
Hourly Chart
If one looks at the daily chart, there are no surprises. The currency exchange rate clearly bounced off the support of an ascending channel pattern.
The rate is set to slowly but steadily go higher until it eventually reaches the most dominant patterns resistance line near the 111.50 mark.
Daily chart
Swiss Foreign Exchange market sentiment became 54% long on Wednesday. On Monday, Swiss traders were neutral in regards to the pair.
Meanwhile, for the fourth consecutive trading session 51% 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 initially caused by the events of the G7 summit. Moreover, the surge was extended by the US-North Korea summit.
The market sentiment of OANDA traders have again increased their bullish sentiment, as 61% of their traders are holding long positions. Previously, 62% of positions were long. In addition, the proportion of long positions of Saxo bank traders is 52%.
Spreads (avg, pip) / Trading volume / Volatility