- SWFX market sentiment is 53% bullish (-3%)
- 60% of pending orders in the 100-pip are to BUY
- ISM Non-Manufacturing PMI
A long awaited decline of the US Dollar against the Japanese Yen was occurring in the first half of Thursday's trading session. The move was expected due to the US Dollar already gaining heavily in the last month.
The Automatic Data Processing Inc. released better-than-expected Non-Farm Employment Change data of 204K for the month of April. The data exceeded forecasts for the fifth consecutive month.
"The labor market continues to maintain a steady pace of strong job growth with little sign of a slowdown," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.
Minor release on Thursday
There is one notable event set to occur from a macroeconomic fundamental release perspective. Namely, the ISM Non-Manufacturing PMI is set to be published.
The data was scheduled to be published at 14:00 GMT. That means that traders should tune in to Dukascopy's webinar platform ten minutes before the release. Namely, Dukascopy Analysts will start presenting data at 13:50 GMT.
USD/JPY pushes lower in Asian session
USD/JPY was trading along the upper boundary of a one-week channel up on Wednesday. The US Dollar managed to reach the 110.00 mark mid-session but was subsequently pushed lower. As a result, the pair breached a more senior ascending channel and the 55-hour SMA during the Asian session.USD/JPY was trading along the upper boundary of a one-week channel up on Wednesday. The US Dollar managed to reach the 110.00 mark mid-session but was subsequently pushed lower. As a result, the pair breached a more senior ascending channel and the 55-hour SMA during the Asian session.
Given that banks in Japan are closed in this session, the latter might not even be reached. Thus, the rate could remain stable and float between the weekly R1 and the 100-hour SMA in the 109.40/90 range.
Hourly Chart
On the daily chart one can add additional information to understand the recent decline of the currency pair. Namely, draw a long term ascending channel pattern on the daily chart.
By doing that one can see that the pair recently broke the previously active channel up, which represented a junior surge in the borders of the mentioned dominant pattern.
Daily chart
SWFX traders are increasingly bullish on the US Dollar, as 53% of open positions were long during the morning hours (-3%). Set up orders are likewise bullish with 58% of them being set to buy the Greenback (+1%).
The market sentiment of OANDA traders is strongly bullish with 58% of them holding long positions. In addition, the number of long positions of Saxo bank traders is 60%.
Spreads (avg, pip) / Trading volume / Volatility