- SWFX market sentiment has become 57% short
- 54% of pending orders in the 100-pip are to BUY
- Economic Calendar review at 12:00 GMT
New high levels of the USD/JPY currency exchange rate had been reached on Monday, as the currency pair had reached the 111.40 mark.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
Another empty Monday
As it is quite often, the Monday's trading session is set to be empty for macroeconomic data release traders and econometric model builders.
However, Dukascopy Analysts are set to host a weekly review of the economic calendar at 12:00 GMT. The event will occur on the bank's webinar platform, which can be joined by clicking on the notification on JForex that will pop up just before the start of the event.
In addition, today there will be another event hosted by Dukascopy on the webinar platform. At 14:00 GMT our analysts will host an introduction to Technical Analysis webinar.
USD/JPY approaches channel line
Strong upside risks remain dominant for the USD/JPY exchange rate, as the rate has been supported by the 55-hour SMA since early last week. This move up has formed a neat short-term channel in a more senior pattern.The US Dollar strengthened during the first hours of Monday's trading session, thus being located near the weekly R1 and the upper boundary of the senior channel circa 111.60. Even if this level does not hold the rate, the monthly and weekly R2s at 112.10 should remain intact today, as technical indicators on the 4H ad 1D charts are pointing to a soon decline.
It is expected that the pair remains trading in the senior channel and thus reverses near the 111.80 area. Meanwhile, a fall below the 55-hour SMA at 110.70 should not occur today.
Hourly Chart
The daily charts shows a new ascending channel pattern, which we marked some time ago. Since then it has been guiding the rate higher and higher.
Each day our analyst have been marking a new resistance level, which had been broken each consecutive day. The next target is the new weekly R1 at 111.50 mark.
Daily chart
SWFX traders remain bearish on the USD/JPY pair, as 57% of open positions are short. Meanwhile, trader set up orders are bullish with 62% of them being set to buy the Greenback.
The market sentiment of OANDA traders remains strongly bullish with 57% of them holding long positions. In addition, the number of long positions of Saxo bank traders is 54%.
Spreads (avg, pip) / Trading volume / Volatility