- SWFX market sentiment is 65% bullish
- 57% of pending orders in a 100-pip range to sell
- Upward potential up to 110.10
- Upcoming Events: Japan's Revised Industrial Production m/m
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.
Empty calendar on Monday
The new trading week starts with an empty economic calendar for the US. The only data release from Japan is the revised industrial production at 0430GMT on Tuesday. As a result, this trading session may be relatively calm, as traders get ready for the UK CPI and US (Core) Retail Sales tomorrow, among other less significant releases.USD/JPY realises upside potential
The US Dollar was relatively flat against the Yen on Friday, thus remaining in the 109.00/20 area for the whole session. The given lack of momentum changed this morning when the rate managed to reach the weekly PP at 109.62. The steepness of the downtrend has shifted north, as apparent from the rate's inability to reach the lower channel boundary. Thus, the formation of a junior channel down was confirmed. Taking into account bullish technical indicators, the upside limit for this session may be set at the upper boundary of either the senior or junior channel circa 109.80 and 110.20, respectively. The latter is also supported by the 200-hour SMA.Hourly chart
The US Dollar closed Friday's trading session at equilibrium, even despite bears trying to push the rate below the monthly S1 at 108.82. The rate has reversed to the upside today, crossing the weekly PP at the 109.62 mark. It is likely that the rates edges even higher and tries to reach 110.00. By and large, the rate is expected to remain in the 109.50/110.00 area.
Daily chart
SWFX market sentiment is bullish on Monday, as the number of open positions is 65% long (-2%). Furthermore, 66% of pending orders are to buy the US Dollar (+5%).
OANDA clients are likewise bullish on the pair, as 66% of all open positions are long (+2%). Similar viewpoint is held by Saxo Bank clients with 63% long positions (unchanged from Friday).