- SWFX market sentiment is 63% bullish
- 53% of pending orders in a 100-pip range to sell
- Gains could be capped near 110.10
- Bank Holiday in the US
The Labour Department revealed that the US marked an increase of 156K new jobs over the course of August, which was below expectations, but strong enough to keep the country's economy growing at a steady pace.
Meanwhile, the unemployment rate rose to 4.4% from 4.3% in the same period. Despite moderation in the labour market, data showed nothing that could undermine the Fed's intention to start trimming its balance sheet.
Empty calendar on Monday
Banks in the United States are closed due to Labour Day; thus, no events are scheduled for this trading session. However, Japan is to have its 10-y Bond Auction tomorrow at 0345GMT.
USD/JPY slips on fears of Kim Jong-Un
Over the last couple of weeks, movement of the USD/JPY currency pair was strongly affected by news coming from the Korean peninsula. The same thing happened today as well. In result of a successful test of a hydrogen bomb, the Yen started to actively recover against the Greenback. These growing fears drove the pair straight through a combination of the weekly and monthly PP around 109.75 as well as the 100- and 200-hour SMAs. As a result, now the rate has no any obstacles on its way up until the updated weekly S1 at 108.80. Consequently, the bears are expected to continue to dominate the market at least until the pair will encounter the above support.Hourly chart
Geopolitical tensions resulted in the pair opening below the monthly and weekly PPs and the 20-day SMA. Thus, this area has turned into a strong resistance area. Meanwhile, there are no barriers that may limit a fall until the weekly S1 neither on hourly nor daily time-frames.
Daily chart
SWFX market sentiment has increased on Monday, as 63% of traders are holding open positions (+6%). However, 51% of pending orders are to sell the US Dollar.
OANDA is strongly bullish on the pair, with 64% of its clients having long positions (-2%). Similar viewpoint is held by Saxo Bank clients with 60% long positions (-4%).