- SWFX market sentiment is 68% bullish
- 51% of pending orders in a 100-pip range to sell
- 57% of traders are bearish on the Yen
- Upcoming Events: Empty day
Second time in a row the currency exchange rate failed to break through the monthly S1 at 108.82 Today the pair is expected to try to test a combined resistance level set up by the weekly PP at the 100- and 200-hour SMAs. But this attempt, most probably, is going to fail.
The Labour Department revealed that the number of Americans filing for unemployment benefits fell to the lowest level in six months last week.
The report showed the initial jobless claims dropped to 232K in the week ended August 12, down from the prior week's 244K.
Data provided a good sign for the Federal Reserve as the further tightening in the labour market could encourage the US economic growth.
Surprisingly empty Tuesday
Second day in a row an economic calendar does not contain any relevant macroeconomic data releases related either to the United States, or Japan.
USD/JPY heads towards 109.59
The USD/JPY exchange rate acted exactly as it was expected. Namely, it made the second attempt to break through the monthly S2 at 108.82, but failed. In result of a rebound, it broke through the upper boundary of a junior descending channel.At the moment, it is heading upwards towards a combined resistance level set up a combination of the weekly PP at 109.59 in conjunction with the 100- and 200-hour SMAs. Most probably, their combined effort will force the pair to retreat.
An aggregate of technical indicators support this possibility by sending strong sell signal. But in the meantime, the average market sentiment remains 68.24% bullish, which should not be disregarded in the larger perspective.
Hourly chart
Yesterday the currency rate has expectedly failed to sneak through the monthly S1 located at the 108.92 level. In the short run, it is expected to try to get back into formation. However, given the general downtrend the pair, most probably, will be forced to make one try to break to the bottom.
Daily chart
SWFX market sentiment is bullish on Thursday, as the number of open positions is 68% long. Furthermore, 56% of pending orders are to buy the US Dollar, while 57% to sell the Yen.
OANDA clients are likewise bullish on the pair, as 68% of all open positions are long. Similar viewpoint is held by Saxo Bank clients with 65.50% long positions.