- SWFX market sentiment has become 60% short
- 57% of pending orders in the 100-pip are to BUY
- Tutorial webinars in the afternoon
After the long continuous surge the US Dollar has retraced downwards against the Japanese Yen. However, during the time of analysing, it could be noticed that the rate was once more going upwards.
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.
Tutorial sessions instead of Data Releases
This Tuesday there are no notable data releases scheduled to occur on the economic calendar. However, Dukascopy analytics are offering other useful webinars during the day.
First will be the Introduction to Trading Ideas webinar at 12:00 GMT. During that webinar the publication that you are reading and its elements will be covered and explained in detail. Afterwards will follow a questions and answer session with our senior analyst and webinar hosting community traders.
As soon as the Trading Ideas webinar ends, another one will start. Introduction to Simple Moving Averages will start at 13:00 GMT. The webinar's purpose will be to explain SMAs in detail and host a subsequent QA session.
USD/JPY breaches junior pattern
Bulls guided USD/JPY during the first part of Monday, thus pushing the Greenback 43 pips higher against the Yen. This slight advantage was lost later in the day, following a bearish reversal from the 111.40 mark.Due to this move, the pair failed to reach the upper boundary of a four-week channel up and subsequently fell below the junior pattern and the 55-hour SMA early today. From the theoretical perspective, a decline should follow.
A breakout of the 100-hour SMA and the monthly R1 at 110.70 would send the pair towards its next target of the 200-hour SMA, the weekly PP and the senior channel line at 110.20. In case the 110.70 area remains intact, the US Dollar should continue approaching the senior channel and the monthly R2 at 112.00 during the following days.
Hourly Chart
The daily chart and its ascending channel have been piercing one resistance after another. However, that has ended. One can clearly see that on Tuesday the currency exchange rate remained near Monday's trading levels.
Meanwhile, the targeted resistance remains the same. Namely, it is expected that the currency exchange rate will reach for the 111.50 mark, where the weekly R1 is located at.
Daily chart
SWFX traders remain bearish on the USD/JPY pair, as 60% of open positions are short. Meanwhile, trader set up orders are bullish with 60% 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 55%.
Spreads (avg, pip) / Trading volume / Volatility