- SWFX market sentiment is 69% bullish
- Pending orders in the 100-pip range are 57% to SELL
- News from G20 meetings
The USD/JPY has continued lower on Monday until it suddenly moved to the upside. During the move, the junior channel down pattern was broken.
The US Census Bureau revealed on Friday that the US building permits data did not meet expectations, showing the growth pace of only 1.30M units in February, following the downwardly revised 1.38M reading in the prior month.
The stronger-than-expected fall in the US homebuilding was caused by a plunge in the multi-family housing construction offsetting a rise in single-family projects for the second month in succession.
G20 Meetings
In regards to the macroeconomic events this week, all attention will be on the GBP. So for other pairs there are other fundamental events to focus on. Namely, the G20 Meetings will take place on Monday and Tuesday.
Meanwhile, the markets expect a US rate hike to occur on Tuesday. The Fed is expected to increase the base rate from 1.50% to 1.75%. That should cause a surge in the US Dollar.
USD/JPY meets 55-hour SMA
The US Dollar continues to weaken against the Yen for the fourth consecutive session. Some upside potential was apparent mid-Friday when bulls responded positively to US fundamentals.This appreciation, however, was stopped by the 55-hour SMA near 106.20 which continued to guide the pair during the following hours. As a result, the Greenback breached a two-week channel up and was located near a trend-line early today.
Technical indicators are bearish. This means that the 2017/2018 low of 105.35 could occur soon. A further fall is unlikely, given that this area is likewise supported by the weekly S1.
In terms of upside potential, the ultimate high in this session should be the 100– and 200-hour SMAs and the weekly PP if no positive developments add some additional strength to bulls.
Hourly Chart
The daily chart has not given any additional information during the past week. The reason for that is the fact that the pair has been trading in an almost horizontal pattern after breaking out from the previously active channel down pattern.
In regards to the future, we are still expecting the reveal of a new long term pattern.
Daily chart
SWFX traders are still on the long side, as 69% of open positions were bullish during the morning hours.
However, trader set up orders remain bullish, as 55% of trader set up orders were to buy the US Dollar in favour to the Japanese Yen.
Meanwhile, the market sentiment of OANDA traders remains strongly bullish with 71% long positions. In addition, Saxo bank traders are 58% bullish in regards to this pair.
Spreads (avg, pip) / Trading volume / Volatility