USD/JPY is expected to trade in lower range. It is undermined by the selling of the yen crosses amid increased risk aversion (VIX fear gauge rose 4.41% to 13.96) as S&P tumbled 1.25% Friday and weaker dollar sentiment after U.S. created less-than-expected 192,000 new jobs in March (versus 200,000 forecast), while the unemployment rate remained unchanged at 6.7% (versus 6.6% forecast). USD/JPY is also weighed by the lower U.S. Treasury yields and Japan’s exports sales. But USD/JPY losses are tempered by the demand from the Japanese importers and loose Bank of Japan monetary policy.
Technical сomment:
Daily chart is mixed as MACD is bullish, but stochastics is turned bearish at overbought zone.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 102.95. A breach of this target will move the pair further downwards to 102.70. The pivot point stands at 103.45. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 103.70 and the second target at 104.10.
Resistance levels:
103.70
104.10
104.45
Support levels:
102.95
102.70
102.45
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/JPY is expected to trade in lower range. It is undermined by the selling of the yen crosses amid increased risk aversion (VIX fear gauge rose 4.41% to 13.96) as S&P tumbled 1.25% Friday and weaker dollar sentiment after U.S. created less-than-expected 192,000 new jobs in March (versus 200,000 forecast), while the unemployment rate remained unchanged at 6.7% (versus 6.6% forecast). USD/JPY is also weighed by the lower U.S. Treasury yields and Japan’s exports sales. But USD/JPY losses are tempered by the demand from the Japanese importers and loose Bank of Japan monetary policy.
Technical сomment:
Daily chart is mixed as MACD is bullish, but stochastics is turned bearish at overbought zone.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 102.95. A breach of this target will move the pair further downwards to 102.70. The pivot point stands at 103.45. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 103.70 and the second target at 104.10.
Resistance levels:
103.70
104.10
104.45
Support levels:
102.95
102.70
102.45
The material has been provided by InstaForex Company – www.instaforex.com
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