Technical analysis of USD/JPY for September 09, 2016
September 9, 2016 6:00 am
USD/JPY is expected to trade with bullish bias. The pair stands firmly above its horizontal support at 101.45 and is rebounding now. Both the 20-period and 50-period moving averages are turning up and maintain a bullish bias. The relative strength index is still above its neutrality area at 50. On Thursday, U.S. indices ended broadly lower pressured by shares in the Consumer Durables & Apparel (-2.01%), Technology Hardware & Equipment (-1.98%) and Real Estate (-1.22%) sectors as traders digested the decision by the European Central Bank to keep interest rates unchanged and looked for fresh catalysts to propel the market higher. On the economic data front, initial jobless claims fell to 259k in week ended Sept. 3rd (estimated 265k) from 263k in the previous week. Continuing claims dropped to 2.14M in week ended Aug. 27th (forecasted 2.15M) from 2.15M in prior week (revised from 2.16M).
As long as 101.45 is support, look for a new rise to 102.80. A break above this level would open the way to further upside toward the next resistance at 103.20.
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 102.80 and the second one at 103.20. In the alternative scenario, short positions are recommended with the first target at 101.15 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 100.80. The pivot point is at 101.45.
Resistance levels: 102.80, 103.20, 103.80
Support levels: 101.15, 100.80, 100.50
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
USD/JPY is expected to trade with bullish bias. The pair stands firmly above its horizontal support at 101.45 and is rebounding now. Both the 20-period and 50-period moving averages are turning up and maintain a bullish bias. The relative strength index is still above its neutrality area at 50. On Thursday, U.S. indices ended broadly lower pressured by shares in the Consumer Durables & Apparel (-2.01%), Technology Hardware & Equipment (-1.98%) and Real Estate (-1.22%) sectors as traders digested the decision by the European Central Bank to keep interest rates unchanged and looked for fresh catalysts to propel the market higher. On the economic data front, initial jobless claims fell to 259k in week ended Sept. 3rd (estimated 265k) from 263k in the previous week. Continuing claims dropped to 2.14M in week ended Aug. 27th (forecasted 2.15M) from 2.15M in prior week (revised from 2.16M).
As long as 101.45 is support, look for a new rise to 102.80. A break above this level would open the way to further upside toward the next resistance at 103.20.
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 102.80 and the second one at 103.20. In the alternative scenario, short positions are recommended with the first target at 101.15 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 100.80. The pivot point is at 101.45.
Resistance levels: 102.80, 103.20, 103.80
Support levels: 101.15, 100.80, 100.50
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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