- SWFX market sentiment is neutral on Wednesday
- 64% of pending orders in the 100-pip are to BUY
- US Building Permits at 12:30 GMT
The resistance cluster, which was described on Tuesday had been broken by the middle of that day's trading session. However, on Wednesday the currency exchange rate was consolidating before beginning a decline.
The Census Bureau released two datasets simultaneously, where Advance Retail Sales for the month of April came out lower-than-expected of 0.3%, compared to 0.6% in the previous period.
Moreover, Core Retail Sales too came out to be short of expectations of 0.3%, compared to 0.2% in the previous month.
"Looking ahead, the consumer faces the added burden of higher gasoline prices," said Michael Feroli, an economist at JPMorgan in New York.
US Building Permits at the usual time
Tuesday showed minor swings in regards to macroeconomic data releases. The releases were covered by our team and some managed to take advantage of the currency exchange rate swings.
Meanwhile, on Wednesday we have another event, which might cause a bounce in all of the US Dollar involved pairs. Namely, the US Building Permits will be published at 12:30 GMT. Tune in for the release at 12:20 GMT and at 12:00 GMT for the day's research webinar. During that webinar our analysts will look at the previous week's data releases.
However, if you have no idea what Forex Swing trading and an economic calendar is, remember that on Thursday at 12:00 GMT our analysts will host an introduction to Swing Trading webinar. Tune in to the bank's webinar platform at the mentioned times to benefit from the information.
USD/JPY consolidates near 110.40
The US Dollar managed to maintain its upside momentum on Tuesday, thus gaining 0.55% against the Japanese Yen. As a result, the pair was trading near the 110.40 mark on Wednesday morning where the 61.80% Fibonacci retracement is located.Technical indicators are gradually starting to edge lower; thus, it is likely that the price follows soon. The nearest support is set by the upper boundary of the breached wedge pattern at 109.90, while a more important support area is 109.60/40 due to the 100– and 200-hour SMAs.
Meanwhile, a significant resistance barrier is the weekly R2 and the monthly R1 at 110.70. Even if the pair still manages to appreciate during the first part of the day, this level is unlikely to be surpassed.
Hourly Chart
As expected the currency exchange rate broke past the 110.00 mark on Tuesday. However, there were new developments on Wednesday.
Namely, the currency exchange rate's surge was stopped by resistance levels just below the 110.50 mark.
Daily chart
SWFX traders are neutral on the USD/JPY pair, as 50% of open positions were long during the morning hours. Trader set up orders are bullish with 58% of them being set to buy the Greenback.
The market sentiment of OANDA traders is strongly bullish with 57% of them holding long positions. In addition, the number of long positions of Saxo bank traders is 59%.
Spreads (avg, pip) / Trading volume / Volatility