USD/JPY is expected to advance further. The pair is holding on the upside and is likely to challenge its nearest resistance at 102.50. The 50-period moving average is well directed, and maintains a bullish outlook. Furthermore, the relative strength index is rebounding on the support of its 30% level, which may indicate the end of consolidations. U.S. government bonds rebounded from Friday’s selloff. The benchmark 10-year U.S. Treasury yield dropped to 1.566% from 1.631% in the previous session. Meanwhile, precious metals also posted a rebound. Gold edged up 0.2% to $1323 an ounce, while silver rose 1.2% to 18.88 an ounce. Nymex crude oil dropped 1.4% to $46.98 a barrel.
On the economic data front, personal income in July grew by 0.4% in line with estimates, from an increase of 0.3% in the previous month (revised from +0.2%). On the other hand, personal spending improved by 0.3% in July in line with estimates, from a rise of 0.5% in June (revised from +0.4). In other news, the Dallas federal manufacturing activity index fell to -6.2 in August (estimated -3.9) from -1.3 in prior month.
Hence, as long as 101.30 holds as a support, look for further advance to 102.50 and even to 102.80 in extension.
Trading Recommendation:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 102.50 and the second one, at 102.80. In the alternative scenario, short positions are recommended with the first target at 100.85 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 100.50. The pivot point is at 101.30.
Resistance levels: 102.50, 102.80, 103.25
Support levels: 100.85, 100.50, 100
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
USD/JPY is expected to advance further. The pair is holding on the upside and is likely to challenge its nearest resistance at 102.50. The 50-period moving average is well directed, and maintains a bullish outlook. Furthermore, the relative strength index is rebounding on the support of its 30% level, which may indicate the end of consolidations. U.S. government bonds rebounded from Friday’s selloff. The benchmark 10-year U.S. Treasury yield dropped to 1.566% from 1.631% in the previous session. Meanwhile, precious metals also posted a rebound. Gold edged up 0.2% to $1323 an ounce, while silver rose 1.2% to 18.88 an ounce. Nymex crude oil dropped 1.4% to $46.98 a barrel.
On the economic data front, personal income in July grew by 0.4% in line with estimates, from an increase of 0.3% in the previous month (revised from +0.2%). On the other hand, personal spending improved by 0.3% in July in line with estimates, from a rise of 0.5% in June (revised from +0.4). In other news, the Dallas federal manufacturing activity index fell to -6.2 in August (estimated -3.9) from -1.3 in prior month.
Hence, as long as 101.30 holds as a support, look for further advance to 102.50 and even to 102.80 in extension.
Trading Recommendation:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 102.50 and the second one, at 102.80. In the alternative scenario, short positions are recommended with the first target at 100.85 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 100.50. The pivot point is at 101.30.
Resistance levels: 102.50, 102.80, 103.25
Support levels: 100.85, 100.50, 100
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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