- The Swiss market sentiment is 55% bearish (+2%)
- 57% of pending orders in the 100-pip range are set to BUY
- Upcoming fundamental events: US (Core) Durable Goods Orders m/m, Fed Chair Powell to speak, Jackson Hole Symposium
The US Dollar showed strengthened against the US Dollar on Thursday, being located at 111.50 early today.
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".
Powell speaks today
Friday's trading session will start with the US monthly Durable Goods Orders at 1230GMT. The market expectation about the core reading is a 0.5% advance during the month of July. The event will be covered by Dukascopy Analytics on the bank's live webinar platform. The cover will start at 12:20 GMT.
Another important fundamental event that could shake the given currency pair is a speech by the Fed Chair Jerome Powell who is to address ‘Monetary Policy in a Changing Economy' at 1400GMT.
USD/JPY breaks pattern
The Japanese Yen has still been depreciating against the US Dollar during the last three days. The main pair passed through the monthly PP( 110.692) and tested weekly R1 during Thursday's trading session. In general, the US Dollar recovered 0.85% from Wednesday night until Friday morning.On Friday morning, the main pair was at 1.1270 showing strong bullish signals. The US Dollar passed through all SMAs on Wednesday and breaks pattern starting from yesterday's session. On Friday, we can observe that the currency movement is trying to fit into the existing trend line.
The 55-hour and 100-hour SMAs have crossed during yesterday's trading session as it was expected. However, the 200-hour SMA has joining the club crossing the 55-hour SMA early on Friday.
Hourly Chart
It is apparent on the daily chart that the USD/JPY exchange rate breached the prevailing wedge pattern to the upside on Thursday. It means that the pair might try to push towards the breached channel line and the monthly PP circa 112.00.
Technical indicators, however, are tilted more to the bearish side. It means that the Greenback's target during the following days could be the 100- and 200-day SMAs at 110.00.
Daily chart
The Swiss Foreign Exchange sentiment was 55% short on Friday morning.
In the meantime, trader set up orders have abandoned the neutral zone, standing at 53% long positions.
53% of Saxo Bank traders are short today, compared with 56% being long on Thursday. Meanwhile, OANDA traders are now neutral.
It can be clearly seen that the global forex market participants are unsure what will be the next move on the charts of the USD/JPY, as the bears and bulls are almost balanced.
Spreads (avg, pip) / Trading volume / Volatility