Overview: USD/JPY is consolidating in higher range as markets await 13:30 GMT U.S. 3Q preliminary GDP (forecast +2.0%). USD/JPY is underpinned by yen-funded carry trades amid positive risk sentiment (VIX fear gauge eased 4.52% to 12.67; S&P rose 0.43% overnight) on expectations of continued stimulus policies from major central banks; and a research paper by William English, head of Federal Reserve’s monetary-affairs division, arguing the Fed’s unemployment threshold for rate increases would be more effective if it were lower than 6.5%–possibly as low as 5.5%–suggesting waiting until the job market got much better before raising rates. USD/JPY also supported by minutes from Bank of Japan October monetary policy meeting indicating a mixed outlook among board members, suggesting further stimulus and yen weakening could be on the way; demand from Japan importers; 0.7% rise in U.S. Conference Board leading index for September (versus +0.6% forecast). But USD/JPY gains tempered by lower U.S. Treasury yields; Japan exporter sales; broadly weaker dollar undertone (ICE spot dollar index last 80.50 versus 80.70 early Wednesday) after strong U.K. factory data and lowered expectations of a rate cut from the European Central Bank today; profit-taking on USD-longs as market participants trim risk exposure ahead of Friday’s U.S. October non-farm payrolls report.
Technical comment: Daily chart is positive-biased as MACD and stochastics are bullish, although latter is at overbought; five-day moving average is above 15-day MA and advancing.
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, a long position is recommended with the first target at 99 and the second target at 99.3. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 97.75 the breach of this target will move the pair further downwards and one may expect the second target at 97.4. The pivot point stands at 98.35.
Resistance levels: 99 99.25 99.6 Support levels: 98.05 97.75 97.4
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/JPY is consolidating in higher range as markets await 13:30 GMT U.S. 3Q preliminary GDP (forecast +2.0%). USD/JPY is underpinned by yen-funded carry trades amid positive risk sentiment (VIX fear gauge eased 4.52% to 12.67; S&P rose 0.43% overnight) on expectations of continued stimulus policies from major central banks; and a research paper by William English, head of Federal Reserve’s monetary-affairs division, arguing the Fed’s unemployment threshold for rate increases would be more effective if it were lower than 6.5%–possibly as low as 5.5%–suggesting waiting until the job market got much better before raising rates. USD/JPY also supported by minutes from Bank of Japan October monetary policy meeting indicating a mixed outlook among board members, suggesting further stimulus and yen weakening could be on the way; demand from Japan importers; 0.7% rise in U.S. Conference Board leading index for September (versus +0.6% forecast). But USD/JPY gains tempered by lower U.S. Treasury yields; Japan exporter sales; broadly weaker dollar undertone (ICE spot dollar index last 80.50 versus 80.70 early Wednesday) after strong U.K. factory data and lowered expectations of a rate cut from the European Central Bank today; profit-taking on USD-longs as market participants trim risk exposure ahead of Friday’s U.S. October non-farm payrolls report.
Technical comment:
Daily chart is positive-biased as MACD and stochastics are bullish, although latter is at overbought; five-day moving average is above 15-day MA and advancing.
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, a long position is recommended with the first target at 99 and the second target at 99.3. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 97.75 the breach of this target will move the pair further downwards and one may expect the second target at 97.4. The pivot point stands at 98.35.
Resistance levels:
99
99.25
99.6
Support levels:
98.05
97.75
97.4
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: