The University of Michigan Consumer Sentiment Index data beat market expectations. The index reading for April increased to 98.0 from 96.9 the previous month. The reading was above consensus expectations of 97.1 and close to 13-year highs. The biggest gains were noted in current conditions sub-index, that increased from 113.2 to 115.2 points which are the highest level since 2000 and it is close to all-time high level as well. The other sub-index that surged higher was expectations index that logged an increase from 86.5 to 86.9 points. In conclusion, the sentiment among the US customers is soaring, and the best guess for a reason behind it is the healthy labor market, steady wages and a moderate inflation levels.
Let’s now take a look at the USD/JPY technical picture at the H4 timeframe. The market conditions are heavily oversold, but it looks like the target for the bears is at the level of 61%Fibo at 107.85. There is still no sign of a bullish divergence between the price and the momentum indicator. The next support is seen at the level of 108.70 and if broken, then the road to the level of 107.85 is open.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Global macro overview for 14/04/2017:
The University of Michigan Consumer Sentiment Index data beat market expectations. The index reading for April increased to 98.0 from 96.9 the previous month. The reading was above consensus expectations of 97.1 and close to 13-year highs. The biggest gains were noted in current conditions sub-index, that increased from 113.2 to 115.2 points which are the highest level since 2000 and it is close to all-time high level as well. The other sub-index that surged higher was expectations index that logged an increase from 86.5 to 86.9 points. In conclusion, the sentiment among the US customers is soaring, and the best guess for a reason behind it is the healthy labor market, steady wages and a moderate inflation levels.
Let’s now take a look at the USD/JPY technical picture at the H4 timeframe. The market conditions are heavily oversold, but it looks like the target for the bears is at the level of 61%Fibo at 107.85. There is still no sign of a bullish divergence between the price and the momentum indicator. The next support is seen at the level of 108.70 and if broken, then the road to the level of 107.85 is open.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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