- SWFX market sentiment is 63% bearish (-1%)
- 55% of pending orders in the 100-pip range are to BUY the US Dollar
- Nearest support is located near 113.00
- Upcoming events: US PPI m/m, US Core PPI m/m, Japan's Core Machinery Orders m/m
The Labour Department stated that the US job openings cooled unexpectedly in the month of October from a record-high registered previously.
According to the JOLTS survey, the number of jobs expecting to be filled dropped 181K to 6.00M, following an upwardly revised 6.18M in the prior month. Meanwhile, the number of hirings grew to 5.55M, with the most of increase coming from hotel and restaurants, the health care industry, financial services and manufacturing.
US Producer Price Index
This session includes only three fundamental, namely, the US Producer Price Index and the Core Producer Price Index for the previous month and the Japanese Core Machinery orders for October to be released at 1330GMT and 2350GMT, respectively.
USD/JPY exits from falling wedge pattern
During yesterday's trading session the currency exchange rate made two attempts to break to the bottom towards the 50% retracement level located at 113.00.However, as markets focused on tomorrow's Fed meeting, the pair failed to bypass even the 55-hour SMA that was backing up the lower trend-line of another rising wedge formation. And only in the early morning it managed to sneak below the 113.47 mark.
Accordingly, until release of information on the American PPI the pair is expected to continue moving in southern direction and trying to reach the bottom edge of a new junior descending channel that lies slightly above the major support zone located between the 113.11 and 113.00 marks.
Hourly chart
The upside momentum that was driving USD/JPY on Thursday and Friday allayed yesterday with almost no gains or loses. Thus, it was no surprise that the first hours of today's session have marked a reversal from the 113.60 mark.
Given the current positioning of the pair, it is expected that the US Dollar once again closes in the red area. The nearest support is the weekly PP at 113.02, while the 55-day SMA is likewise located nearby.
In case the pair manages to appreciate, the psychological 114.00 mark and the weekly R1 should stop any attempts to edge higher.
Daily chart
The bearish SWFX sentiment has decreased by once percentage point in this session, as 63% of open positions are short. Meanwhile, 60% of pending orders are to buy the US Dollar (+1%).
OANDA traders are also bearish on the pair, with 54% of open positions being short for the second consecutive session. Moreover, Saxo Bank clients are holding 53% short positions (-1%).