Overview: USD/JPY–to trade in higher range. Underpinned by positive dollar sentiment (ICE spot dollar index last 82.00 versus 81.43 early Thursday) after U.S. 2Q GDP was revised up more than expected to a 2.5% annual rate (versus +2.2% forecast) from an initial estimate of 1.7%, while latest U.S. weekly jobless claims fell by 6,000 to 331,000, remaining near six-year lows and paving the way for the Fed to start tapering its quantitative easing program sooner rather than later. USD/JPY also supported by demand from Japan importers and investment trusts. But USD/JPY gains tempered by Japan exporter sales; lingering worries over military action by Western governments against Syria and concerns over emerging markets (VIX fear gauge rose 1.94% to 16.81 overnight); positions adjustment before U.S. long weekend (financial markets in U.S. are shut for holiday on Monday). Daily chart positive-biased as MACD in bullish mode, stochastics turning bullish.
Trading recommendations: The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, trading in higher range is most favorable and buy position is recommended above its pivot, with the first target at 98.5 and the second target at 98.75. You should keep in view short position below the pivot keep of the first target at 97.4, breach of this target will move the pair downward further and one may expect the second target at 97.2. The pivot point stands at 97.75.
Overview:
USD/JPY–to trade in higher range. Underpinned by positive dollar sentiment (ICE spot dollar index last 82.00 versus 81.43 early Thursday) after U.S. 2Q GDP was revised up more than expected to a 2.5% annual rate (versus +2.2% forecast) from an initial estimate of 1.7%, while latest U.S. weekly jobless claims fell by 6,000 to 331,000, remaining near six-year lows and paving the way for the Fed to start tapering its quantitative easing program sooner rather than later. USD/JPY also supported by demand from Japan importers and investment trusts. But USD/JPY gains tempered by Japan exporter sales; lingering worries over military action by Western governments against Syria and concerns over emerging markets (VIX fear gauge rose 1.94% to 16.81 overnight); positions adjustment before U.S. long weekend (financial markets in U.S. are shut for holiday on Monday). Daily chart positive-biased as MACD in bullish mode, stochastics turning bullish.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, trading in higher range is most favorable and buy position is recommended above its pivot, with the first target at 98.5 and the second target at 98.75. You should keep in view short position below the pivot keep of the first target at 97.4, breach of this target will move the pair downward further and one may expect the second target at 97.2. The pivot point stands at 97.75.
Resistance Levels:
R1 – 98.5
R2 – 98.75
R3 – 99
Support LevelS:
S1 – 97.4
S2 – 97.2
S3 – 96.85
The material has been provided by InstaForex Company – www.instaforex.com
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