- SWFX market sentiment is 59% bearish (unchanged)
- 54% of pending orders in the 100-pip range are to BUY
- Significant resistance is located at 114.20
- Upcoming events: US Unemployment Claims, US Pending Home Sales m/m, Japan's National Core CPI y/y and Tokyo Core CPI y/y
The Commerce Department showed that the US durable goods rose 2.2% for the month of September, owing to higher demand for transportation equipment.
The report supported an upbeat sentiment in the manufacturing industry, as it managed to start recovering after being hit by hurricanes. In addition, the proposed corporate tax cut is likely be one more catalyst providing a stronger footing for growth in the fourth quarter, as well as in the beginning of 2018.
US Unemployment Claims
The economic calendar for the GBP/USD exchange rate includes two sets of data that should be taken into account. The US Department of Labour is to release the weekly Unemployment Claims at 1230GMT, while the US National Association of Realtors will publish Pending Home Sales for the month of September at 1400GMT.
Meanwhile, Japan's Statistics Bureau is to publish National Core CPI and Tokyo Core CPI at 2330GMT.
USD/JPY fails to surge above 114.20
Although the currency exchange rate was fluctuating in an ascending triangle, releases of better than expected American data forced the pair to stop testing the weekly R1 at 114.19 and make a breakout in the southern direction. As the rate has already passed through the 55- and 100-hour SMAs, it is expected to continue the plunge.However, there are two support barriers on the way that might turnaround the pair one more time. The first one is located between the 113.25 and 113.21 marks, while the second one represents the rising 200-hour SMA.
Daily chart suggests that the pair will not manage to slip below the 113.00 level, as that that area represent location of the lower support line of the dominant rising wedge pattern.
Hourly chart
The trading range for the USD/JPY exchange rate still remains between the weekly R1 and PP at 114.19 and 112.92, respectively, on Thursday. The pair is trading in a medium-term ascending wedge. Taking into account the characteristics of this pattern and the downward-sloping movement of technical indicators, the Greenback is likely to push lower in the upcoming trading days down to the 133.40/50 area.
Daily chart`
SWFX market sentiment remains bearish on Thursday, as 59% of traders are holding short positions (+1%). In addition, 56% of pending orders is to sell the US Dollar (+5%).
Traders at OANDA are likewise bearish on the pair, as 54% of open positions are short (-2%). Meanwhile, the number of open positions by Saxo Bank clients has turned to 51% bullish.