- SWFX market sentiment is 55% bullish
- 51% of pending orders in 100-pip range to buy
- Closest resistance is located at 110.30
- Upcoming Events: US PPI m/m, US Unemployment Claims, US Core PPI m/m, FOMC Member Dudley speaks
The report on the US worker productivity, which revealed a higher-than-anticipated increase in the Q2, resulted in a jump of the USD/JPY currency pair. The Greenback appreciated against the Yen by 0.07% to be seen trading above the 109.69 level after data were published.
The Labour Department showed that the nonfarm productivity rose at a 0.9% annual growth pace in the June quarter, above expectations for a 0.7% rise. Experts suggested that an upward move was supported by higher volume of hours worked, but the overall trend was seen weak, raising doubts that the robust US economic growth nearing 3% year-over-year would be achieved even despite Trump's tax cuts, regulatory rollbacks and higher infrastructure spending.
US PPI and Unemployment Claims at 1230GMT
Today's economic calendar demonstrates an abundance of significant fundamental events, the most important of which is the US PPI and Unemployment Claims at 1230GMT. In addition, the US is set to publish Core PPI at 1230GMT. Finally, the President of the Federal Reserve Bank of New York William Dudley is to hold a press conference about regional wage inequality at 1400GMT.
USD/JPY returns near weekly S1
The US Dollar appreciated slightly against the Yen on Wednesday, thus returning near the 110 mark. The rate fluctuated around the given line, but failed to form a distinctive wave north. The expected move upwards may be realised in this session, as the Greenback should approach the upper boundary of either a senior or a junior channel down. Given the relatively stable move sideways, the former is likely to be breached this week. Along the way, the pair faces a resistance set by the 55-hour SMA and a cluster of the 100– and 200-hour SMAs circa 110.30 and 110.50, respectively. In case the 55-hour SMA is breached, the latter should halt the pair for the following 24 hours, leaving it in the 110.20/40 area. Traders should keep in mind that three sets of important data are released today.Hourly chart
Despite pushing the rate as low as the 109.60 mark on Wednesday, bears were not able to sustain this momentum south, resulting in a close near the lower wedge boundary. The rate has likewise edged lower in this session; however, no significant falls should occur. The rate is likely to trade near the wedge line and reverse in the following trading days.
Daily chart
SWFX market sentiment has turned bullish on Thursday, as the number of open positions is 55% long (+5%). Thus, traders have decreased their short positions which stood at 56% on Tuesday. Meanwhile, 62% of pending orders are to buy the US Dollar.
OANDA clients are likewise bullish on the pair, as 63% of all open positions are long (unchanged from Wednesday). Similar viewpoint is held by Saxo Bank clients with 64% long positions (+6%).