- SWFX market sentiment is 69% bullish
- Pending orders in the 100-pip range are 65% to BUY
- FOMC Member Brainard Speaks
By the end of Monday's trading session, the US Dollar extended it decline against the Japanese Yen. As a result, the pair breached the 200-hour simple moving average
The Institute for Supply Management revealed the decrease in purchasing managers index of 59.3 in March, compared to 60.8 in the previous period. However, there was a decrease, the data was still positive by being above 50 and caused US dollar to strengthen.
The EUR/USD pair stepped lower just a little bit, which can be explained by the fact that there is still a holiday today and the volume is not as usual, which most probably eliminated more significant fluctuations.
FOMC Member Brainard Speaks
In regards to the fundamental events this week, all attention will be focus on the US ADP non-farm employment change which is scheduled for tomorrow the 4th April. The data release will be covered by the Dukascopy research term on live webinar. Meanwhile, the Federal open market committee (FOMC) member Brainard will be speaking later today.
USD/JPY Stranded near the 200-hour SMA
The first part of Monday's trading session showed lack of volatility, as bulls were restricted by the 55-hour SMA.A breakout did occur mid-session; however, the strong downside momentum which was caused primarily by US-China trade dispute pushed the American currency considerably lower down to the 105.65 mark. The pair was subsequently guided by the 200-hour SMA which halted any attempts to move below the 105.75 level.
Technical indicators still remains bearish in this session. In addition, the US Dollar could likewise be negatively affected by further escalation of the aforementioned dispute.
In general, the pair is currently located in between the 55-, 100– and 200-hour SMAs. The nearest support is a channel line near 105.50, while a strong fall would be limited solely by the 105.00 area.
Hourly Chart
The USD/JPY currency pair open below a support cluster set by the weekly and the monthly PPs near 106.08.
Daily chart
SWFX traders are still on the long side, as 69% of open positions were bullish during the morning hours. Moreover, trader set up orders remain bullish, as 65% 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 68% long positions. In addition, Saxo bank traders are 58% bullish in regards to this pair.
Spreads (avg, pip) / Trading volume / Volatility