- SWFX market sentiment is 52% bearish
- 55% of pending orders in 100-pip range are set to sell
- Significant support is located circa at 110.11
- Upcoming Events: US Pending Home Sales and Chicago PMI
The US Dollar did not manage to appreciate against the Japanese Yen at the moment the data on the US advance GDP was released. The pair posted a 0.13% decline to hit the 111.03 mark and then went even slightly lower, though still managed to retreat slightly, with the exchange rate hovering around 111.00 for the day.
The US Bureau of Economic Analysis reported on Friday the first release of the country's GDP for the second quarter rose at an annualised pace of 2.6% from the downwardly-revised reading of 1.2% in the prior quarter, in line with economists' projections. Still, despite the generally positive trend, Friday's data is overall unlikely to bolster any major shift in sentiment on the US economic performance.
Day of Silence
For the fourth week in a row, Monday's trading session does not contain a release of any significant data that might affect the Dollar or the Yen. Nevertheless, traders are advised to pay attention to the US Pending Home Sales that will be announced at 14:00 GMT to have a better understanding about the a situation on the US housing market.
USD/JPY leaves symmetrical triangle
In accordance with expectations, boundaries of a symmetrical triangle proved to be not strong enough to confine the falling Greenback shortly after announcement of the US Advance GDP. However, the fact that the drop was neutralized already by closest support level set up by the weekly S1 at 110.48 indicates that it was not severe. That, in turn, allows assuming that the pair might successfully reach the combined resistance level formed by the 55-hour SMA and the updated weekly PP at 111.16. Given that the further road upstairs is blocked by the 100- and 200-hour SMAs as well as the monthly PP at 111.38, suggests the currency rate is going to make a rebound and begin to move to the south in line with the general downtrend.Hourly chart
Due to the fact that the currency pair failed to jump above the monthly PP at 111.38 last week, it fall to towards the lower support line of a symmetrical triangle is imminent. It is hardly to say, whether the rate will manage to break to the south, as this direction is additionally guarded by the updated weekly S1 at 110.11 and the monthly S1 at 109.84. On the other hand, in order to rebound, the buck will need to pass through the weekly and monthly PP as well as the 55- and 100-day SMAs.
Daily chart
The bearish market sentiment still dominates in this session, as the number of open positions is 52% short, compared to 53% on Friday. Meanwhile, 59% of pending orders are to buy the US Dollar.
On the other hand, OANDA clients are bullish on the pair, as 57% of all open positions are long. Likewise, similar viewpoint is held by Saxo Bank clients who hold 56% long positions.