Overview: USD/JPY is consolidating with bullish bias after hitting near-four-year high of 99.95 on Thursday. The rate is underpinned by Bank of Japan’s aggressive easing measures — 7.5 trillion yen monthly bond-buying, suspending a cap on some bond holdings and dropping a limit on debt maturities — to help reach its 2% inflation target in two years; yen-funded carry trades amid positive risk appetite (VIX fear gauge eased 0.97% to 12.24; S&P rose 0.36% overnight) as investors remain confident about continued accommodative monetary policies from world’s major central banks; bigger-than-expected 42,000 drop in latest U.S. weekly jobless claims to 346,000 (vs. 360,000 forecast). USD/JPY is also supported by demand from Japan importers, life insurers and investment trusts. But USD/JPY gains tempered by Japan exporter sales; positions adjustment before weekend. Daily chart is positive-biased as MACD and stochastics are bullish; five- and 15-day moving averages are advancing.
Recommendation: Buy above 98.9 with upside targets at 100 and 100.4. Resistance levels: R1 – 99.95-100.00 (Thursday’s high) R2 – 100.4 R3 – 100.8 Alternative scenario: Sell below 98.9 with downside targets at 98 and 97.7. Support levels: S1 – 98 S2 – 97.70 (Monday’s low) S3 – 97.1
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/JPY is consolidating with bullish bias after hitting near-four-year high of 99.95 on Thursday. The rate is underpinned by Bank of Japan’s aggressive easing measures — 7.5 trillion yen monthly bond-buying, suspending a cap on some bond holdings and dropping a limit on debt maturities — to help reach its 2% inflation target in two years; yen-funded carry trades amid positive risk appetite (VIX fear gauge eased 0.97% to 12.24; S&P rose 0.36% overnight) as investors remain confident about continued accommodative monetary policies from world’s major central banks; bigger-than-expected 42,000 drop in latest U.S. weekly jobless claims to 346,000 (vs. 360,000 forecast). USD/JPY is also supported by demand from Japan importers, life insurers and investment trusts. But USD/JPY gains tempered by Japan exporter sales; positions adjustment before weekend. Daily chart is positive-biased as MACD and stochastics are bullish; five- and 15-day moving averages are advancing.
Recommendation:
Buy above 98.9 with upside targets at 100 and 100.4.
Resistance levels:
R1 – 99.95-100.00 (Thursday’s high)
R2 – 100.4
R3 – 100.8
Alternative scenario:
Sell below 98.9 with downside targets at 98 and 97.7.
Support levels:
S1 – 98
S2 – 97.70 (Monday’s low)
S3 – 97.1
The material has been provided by InstaForex Company – www.instaforex.com
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