- SWFX market sentiment is 60% bearish
- 53% of pending orders in the 100-pip are set to BUY
- Canadian data and tutorial webinar at 12:00 GMT
On Friday morning the USD/JPY currency exchange rate traded below a strong resistance cluster.The cluster previously was expected to support the currency pair had turned into a blocker of its surge.
The Census Bureau released Residential Building Permits data that came lower-than-expected with a forecast of 1.35M in May, and lower from the previous period.
A survey showed that builders are: "..increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability."
Use of Pivot Points and Canadian data at 12:00 GMT
The week will end quietly for macroeconomic data traders that focus on the US Dollar data releases. However, if one is interested in any action, at 12:30 GMT a Canadian data release is set to occur.
The data release will be covered by the Dukascopy Analytics team on the bank's live webinar platform at 12:20 GMT. Meanwhile, note that at 12:00 GMT the end of the week webinar will begin.
This week our analysts will host a short tutorial session that will introduce traders to the use of simple pivot points.
USD/JPY breaches strong support
As apparent on the chart, the US Dollar respected the dashed trend-line and the monthly R1 at 111.00 yesterday. This allowed bears to take the dominant hand in the market and consequently breach the 55-, 100– and 200-hour SMAs and the 61.80% Fibonacci retracement near 110.20. The remaining part of the session was spent trading sideways.There is still some downside potential until the senior channel line that could be realised during the following hours. However, considering that the 100– and 200-period (4H) SMAs are located at 109.95, this channel line might actually be reached only in the evening with the pair trading sideways.
In terms of resistance, this session should not mark big fundamental leaps; thus, the strong 110.20 area is unlikely to be breached.
Hourly Chart
The previous predictions of the daily chart were false. The support cluster that surrounds the 110.25 mark did not hold its ground. Instead on Friday it had become resistance.
However, note that the pair still remains in the ascending channel pattern. Moreover, it has not made any attempts to breach the combined support of the pattern's lower trend line and the weekly S1 near the 109.70 mark.
Daily chart
On Friday 60% open positions of SWFX market traders were short. It was a large change in sentiment compared to the 53% short positions on Thursday.
Meanwhile, trader set up orders were neutral, which was a decline, compared to the previous 55% bullish sentiment.
These facts combined indicate that the Swiss Retail Traders no longer expect a surge. Instead they have shorted the US Dollar against the Japanese Yen.
OANDA traders are bullish on the pair with 54% of open positions are going long on the USD/JPY pair today.
Meanwhile, Saxo Bank traders are no longer almost neutral, as 53% of open Saxo positions are long.
Spreads (avg, pip) / Trading volume / Volatility