USD/JPY is expected to trade with bearish bias. The pair keeps trading below the key resistance at 102.00 (a key support seen in July 29–August 2). It tested, but did not cross below, the first downside target at 100.65 (the low of August 2) yesterday. Currently, the pair is around the 20-period (30-minute chart) moving average, which stands slightly above the 50-period one. Meanwhile, the intraday relative strength index is above 50, showing a lack of downward momentum for the pair. Range trading between 102.00 and 100.65 is, therefore, expected.
On the economic front, the ADP National Employment Report showed that U.S. private employers added 179,000 jobs in July, better than +170,000 jobs expected. Besides, the Markit U.S. Services PMI posted a final reading of 51.4 in July (vs. 50.9 in a preliminary estimate and 51.4 in June), and the Composite PMI was at 51.8 (vs. 51.5 in a preliminary estimate and 51.2 in June).
Amid the U.S. dollar’s strengthening and investors’ profit-taking, gold retreated 0.4% to $1357 an ounce and silver shed 1.2% to $20.36 an ounce. The benchmark 10-year U.S. Treasury yield edged up to 1.542% from 1.537% Tuesday.
A break below 100.65 would call for a further decline toward the psychological level of 100.00.
Recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 100.65. A break below this target will move the pair further downwards to 100.00. The pivot point stands at 102.00. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 102.85 and the second one at 103.95.
Resistance levels: 102.85, 103.95, 104.60
Support levels: 100.65, 100.00, 99.55
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
USD/JPY is expected to trade with bearish bias. The pair keeps trading below the key resistance at 102.00 (a key support seen in July 29–August 2). It tested, but did not cross below, the first downside target at 100.65 (the low of August 2) yesterday. Currently, the pair is around the 20-period (30-minute chart) moving average, which stands slightly above the 50-period one. Meanwhile, the intraday relative strength index is above 50, showing a lack of downward momentum for the pair. Range trading between 102.00 and 100.65 is, therefore, expected.
On the economic front, the ADP National Employment Report showed that U.S. private employers added 179,000 jobs in July, better than +170,000 jobs expected. Besides, the Markit U.S. Services PMI posted a final reading of 51.4 in July (vs. 50.9 in a preliminary estimate and 51.4 in June), and the Composite PMI was at 51.8 (vs. 51.5 in a preliminary estimate and 51.2 in June).
Amid the U.S. dollar’s strengthening and investors’ profit-taking, gold retreated 0.4% to $1357 an ounce and silver shed 1.2% to $20.36 an ounce. The benchmark 10-year U.S. Treasury yield edged up to 1.542% from 1.537% Tuesday.
A break below 100.65 would call for a further decline toward the psychological level of 100.00.
Recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 100.65. A break below this target will move the pair further downwards to 100.00. The pivot point stands at 102.00. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 102.85 and the second one at 103.95.
Resistance levels: 102.85, 103.95, 104.60
Support levels: 100.65, 100.00, 99.55
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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