- SWFX market sentiment is once more 53% bullish
- 51% of pending orders in the 100-pip are to BUY
- ISM Manufacturing PMI
On Monday the USD/JPY exchange rate was guided mainly by the 55-hour simple moving average.
The Bureau of Economic Analysis released Advance Gross Domestic Product data for Q1 2018, but despite the fact that the data came out better-than-expected of 2.3%, compared to the 2.0% estimate, the EUR/USD currency pair moved upwards after bouncing a little bit lower at the moment of the report.
The move upwards may be caused by the fact that in the previous quarter Advance GDP data was 2.6%, which was about 0.3% higher than in the latest quarter.
ISM Manufacturing PMI
The first notable fundamental event of the week is about to occur on Tuesday. Namely, the US ISM Manufacturing PMI.
The data release will be covered by the Dukascopy Research team ten minutes prior to the data released.
USD/JPY driven by simple moving average
The US Dollar continues to move sideways against the Japanese Yen for the fourth consecutive session. The pair's movement on Monday was guided by the 55– and 100-hour SMAs which allowed the Greenback to return to the upper boundary of its four-day trading range by Tuesday morning. This level is likewise the pair's highest position since early February.Technical indicators remain bullish for this session, suggesting that the aforementioned moving averages are likely to continue supporting the rate. In case the prevailing range is breached to the upside, the US Dollar should approach and eventually test the weekly R1 at 109.85.
Meanwhile, the weekly PP should provide an unbreakable support at 108.80.
Hourly Chart
The US Dollar continues trading sideways against the Japanese Yen. However, the currency pair has shown a sign of an upward move.
Daily chart
Daily technical indicators suggest that the pair should soon mark a bearish reversal, as the US Dollar is approaching the overbought territory. It is possible that the pair still reaches the 200-day SMA and the 38.20% Fibonacci retracement prior to reversing to the downside.
SWFX traders become bullish on USD/JPY, as 53% of open positions were long during the morning hours. Set up orders are likewise bullish with 51% of them being set to buy the Greenback.
The market sentiment of OANDA traders remains strongly bullish with 60% of them holding long positions. In addition, the number of long positions of Saxo bank traders is 59%.
Spreads (avg, pip) / Trading volume / Volatility