Overview: USD/JPY is trading with bearish bias. The rate is underpinned by positive dollar sentiment after Chairman Bernanke signaled Wednesday quantitative easing by the U.S. Federal Reserve could be slowed this year and end altogether by middle of 2014, and his upbeat assessment of the U.S. economy; widening USD-JPY interest differential–U.S. Treasury 10-year yield jumped to nearly 2.55% Friday, its highest level in 22 months; demand from Japan importers and investment trusts. But USD/JPY gains tempered by Japan exporter sales. Daily chart is positive-biased as stochastics is rising from oversold, MACD staging bullish crossover against its exponential moving average.
Trading recommendation: The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 94.35 in view, breach of this target will move the pair further downward and you should expect the second target at 93.75. Pivot point stands at 95.3. In case the price moves in opposite direction and returns from its support and moves above its pivot point, trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 95.85 and the second target at 96.5.
Overview:
USD/JPY is trading with bearish bias. The rate is underpinned by positive dollar sentiment after Chairman Bernanke signaled Wednesday quantitative easing by the U.S. Federal Reserve could be slowed this year and end altogether by middle of 2014, and his upbeat assessment of the U.S. economy; widening USD-JPY interest differential–U.S. Treasury 10-year yield jumped to nearly 2.55% Friday, its highest level in 22 months; demand from Japan importers and investment trusts. But USD/JPY gains tempered by Japan exporter sales. Daily chart is positive-biased as stochastics is rising from oversold, MACD staging bullish crossover against its exponential moving average.
Trading recommendation:
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 94.35 in view, breach of this target will move the pair further downward and you should expect the second target at 93.75. Pivot point stands at 95.3. In case the price moves in opposite direction and returns from its support and moves above its pivot point, trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 95.85 and the second target at 96.5.
Support levels:
S1 – 96.8
S2 – 96.2
S3 – 95.75
Resistance levels:
R1 – 98.7
R2 – 99.25
R3 – 99.85
The material has been provided by InstaForex Company – www.instaforex.com
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