- SWFX market sentiment is 61% bearish (-1%)
- 53% of pending orders in the 100-pip range are to BUY the Greenback
- Upside target for today around 113.00
- Upcoming events: US ADP Non-Farm Employment Change, US Unemployment Claims, Japan's Monetary Base y/y,
The Greenback rose against the Japanese Yen on strong ISM manufacturing and construction release . The USD/JPY exchange rate jumped 11 base points to touch 112.50 areas, ahead of the 22 pips gain on the FOMC meeting minutes release.
The US factory growth accelerated more than projected by the end of 2017, fuelled by stronger new orders' growth, indicating solid economic momentum in the period. The Institute for Supply Management stated that its Manufacturing PMI grew to 59.7 in the reported month, suggesting expansion in the sector. In the following FOMS meeting minutes report, the Fed policymakers indicated that further rate increases would be guided by fiscal stimulus, consumer inflation.
Various fundamentals in this session
The US is to publish ADP Non-Farm Employment Change for the month of December and weekly Unemployment Claims at 1315GMT and 1330GMT, respectively. Meanwhile, the Bank of Japan is to release its monthly Monetary Base later in the day at 2350GMT.
USD/JPY heads down to test 112.50
In early hours of this trading session the buck stopped the surge and bounced off from the 112.79 level. In essence, this turning point simultaneously represents the second reaction high of a two unconfirmed descending channels.As the northern side is additionally secured by the weekly and monthly PP as well as the slipping 200-hour SMA, the Yen is expected to resume the rally against the Dollar tending to reach the 112.13 mark by the end of the week.
However, this scenario might be altered due to release of information on the American labour market. In that case the currency rate might end the week near the psychological 113.00 level.
Hourly chart
The strong support of the weekly S1 apparent on Wednesday allowed the pair to reverse northwards near the 112.30 mark.
It is likely that the pair appreciates within the remaining week, as the broad-based weakness of the US Dollar seems to be gone. However, the monthly PP at 112.63 might provide a significant resistance area.
Daily chart
SWFX market sentiment is bearish, as 61% of open positons are short (-1%). Meanwhile, 58% of pending orders are to buy the US Dollar (+2%).
OANDA traders are now bullish on the pair, as they are holding 58% long positions in this session. Market sentiment of Saxo Bank is also bullish with 51% long positions (-2%).