- SWFX market sentiment is 52% bullish
- 51% of pending orders in the 100-pip are to SELL
- US President Trump Speaks
The USD/JPY currency pair was unable to surpass a resistance cluster formed by the combination of the 100- and the 200- hour SMAs at 109.32 on Monday.
The Institute for Supply Management released lower-than-expected Non-Manufacturing Purchasing Managers' Index data of 56.8 for the month of April.
"The trade tensions are impacting purchasing of steel and are causing suppliers to send letters of concern," a respondent from the construction industry said.
US President Donald Trump Speaks
US President Donald Trump is scheduled to speak today regarding the Iranian International nuclear deal.
This fundamental event could have a major effect on currencies and the stock market.
USD/JPY restricted by SMAs
Despite attempts to edge higher during the previous two trading sessions, the US Dollar failed to overcome the 200-hour SMA and thus entered a minor period of consolidation. This has resulted in the formation of a short-term ascending channel (drawn with dashed lines). The downside limit during this time has been provided by a seven-week channel up.Early on Tuesday, the Greenback was restricted by the combined resistance of the 55-hour SMA and the 50.0% Fibonacci retracement at 109.15. If this level is surpassed, another strong barrier—the 100– and 200-hour SMAs—are limiting an advance above 109.40. In terms of support, the weekly S1 is located at 108.50.
Technical indicators are rather indecisive for this session, suggesting that the general direction of the pair could remain sideways in this session if no fundamentals disrupt this assumption.
Hourly Chart
On the daily chart, the currency pair continues to maintain a descending channel. However, today opening candles breached the lower boundary of an ascending pattern.
Daily chart
SWFX traders remain bullish on the US Dollar, as 52% of open positions were long during the morning hours. Set up orders are bearish with 51% of them being set to sell the Greenback.
The market sentiment of OANDA traders is strongly bullish with 59% of them holding long positions. In addition, the number of long positions of Saxo bank traders is 61%.
Spreads (avg, pip) / Trading volume / Volatility