- Swiss market sentiment is 54% bearish
- 54% of pending orders in the 100-pip range are set to BUY
- Various webinars during the day
On Monday morning the USD/JPY rate was stuck below a strong resistance cluster. Moreover, it had no support, which indicated that the rate was set to decline..
The Census Bureau released Retail Sales data that came better-than-expected of 0.5% to forecasted 0.1%. The data represents a good sign for the Greenback, as well as an increase of total value of sales at the retail level.
Michael Feroli, an economist at JPMorgan Chase said: "It gives us comfort that consumers are nowhere near to being as overstretched as they were in the years heading into the Great Recession".
Empty day for fundamentals
Monday's and Tuesday's economic calendars are empty. It is the third week of the month. Due to that reason it is no surprise that there are no data releases scheduled.
Meanwhile, note that the Dukascopy webinars program is still full of various programs. Namely, join the Dukascopy Analytics team for the weekly macroeconomic calendar analysis at 12:00 GMT. In addition, at 13:00 GMT there will be a stock review webinar of the Apple stock.
USD/JPY faces resistance
The US Dollar has surged against the Japanese Yen in the second half of Friday's trading and on Monday morning. However, the rate has encountered a resistance cluster near the 110.70 mark. Namely, the weekly PP and the 55-hour simple moving average were providing resistance at that level.Meanwhile, the pair had no support as low as 110.37, where a monthly pivot point level was located at.
It can be expected that the rate will decline either due to the mentioned resistance or due to additional SMAs approaching from the upside.
Hourly Chart
Since the breaking of the speculative descending long term pattern was broken, there are no notable dominant pattern observable on the pair's daily chart. Although, one is highly likely going to reveal itself in the future.
Meanwhile, it could be seen that the 55-day simple moving average was influencing the currency exchange rate during the middle of August. Meanwhile, on the daily chart one could clearly observe how the various weekly and monthly pivot points influence the currency pair.
Daily chart
With the start of a new week SWFX traders remained slightly bearish, as 54% of trader open positions were short.
In the meantime, 52% of trader set up orders are set to buy the US Dollar in favour to the Japanese Yen.
Saxo Bank traders are no longer shorting the USD/JPY, as 60% of set up orders at the brokerage are long. Meanwhile, OANDA traders are 56% long on the pair.
The drastic fluctuations in the Swiss Foreign Exchange sentiment have ended. The sentiment was bouncing around, as Swiss traders either could not decide what was happening with the pair or took advantage of the short term fluctuations.
On Friday, these fluctuations had stopped as almost neutral sentiment set in both in the open positions and the pending orders to sell or buy.
Spreads (avg, pip) / Trading volume / Volatility