- SWFX market sentiment is 59% bearish
- 56 % of pending orders in the 100-pip are set to BUY
- US Building Permits
The USD/JPY exchange rate plummeted due to the US and China rising trade tension.
The Bureau of Labor Statistics released Producer Price Index data that came out better-than-expected of 0.50%, compared to the forecast of 0.30% and 0.10% in the previous period.
On Wednesday, the Labor Department said that the increase in the Wholesale Prices was boosted by the surge in gasoline prices and continuous rise in the cost of services.
US Building Permits
On Tuesday, the US Census Bureau is set to announce the monthly Building Permits and Housing scheduled at 12:30GMT.
USD/JPY pressurized by SMAs
Monday's trading session was spent with very low volatility in the 110.40/60 range, thus leaving USD/JPY fluctuating around the 55– and 100-hour SMAs at 110.50.This lack of movement changed drastically early today. The US introducing new tariffs on China resulted in higher demand for the Yen as a safe-haven currency. This caused a 0.90% plunge within a couple of hours, and the Greenback consequently breached all three SMAs, the three-week ascending channel and the weekly S1 just to trade near 109.60 at the time of this analysis.
It is expected that the nearby-located senior channel and the monthly PP mark a point of reversal, thus sending the pair back to the 61.80% Fibonacci retracement, the 200-hour and 55-period (4H) SMAs and the weekly PP circa 110.30 today.
Hourly Chart
On the daily time-frame, the USD/JPY currency pair has moved toward the lower boundary of an ascending channel. At the time of this write-up, the weekly pivot point at 109.71 was providing support for the rate.
Daily chart
On Tuesday, 59% open positions of SWFX market traders were SHORT.
Meanwhile, trader set up orders are bullish with 56% of them being set to buy the Greenback.
OANDA traders are bullish on the pair with 56% of open positions are going long on the USD/JPY pair today. Saxo bank traders are likewise bullish with 52% long positions.
Spreads (avg, pip) / Trading volume / Volatility