Overview: The USD/JPY consolidates after hitting five-year high of 103.92 Friday.The USD/JPY was undermined by position-squaring and selling of yen crosses amid diminished risk appetite (VIX rose 1.42% to 15.76, U.S. stocks ended roughly flat Friday as S&P slipped 0.01%, DJIA gained 0.1%). The market is cautious ahead of Tuesday-Wednesday’s Federal Reserve policy meeting. The USD/JPY was also weighed by Japan exporter sales. But the USD/JPY losses were tempered by demand from Japan importers; positive USD sentiment on increased odds that the Federal Reserve might start winding down its monthly $85 billion bond-buying program this week after recent upbeat U.S. data. There are also expectations that the Bank of Japan will expand its monetary easing measures further to support economic growth and to reach its 2% inflation target by the end of March 2016. Yen crosses are vulnerable to December HSBC China flash manufacturing PMI data on 01:45 GMT.
Overview: Daily chart is mixed as MACD & stochastics are bullish, five- & 15-day moving averages advancing; but bearish shooting-star candlestick pattern has been completed on Friday.
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 103.4 and the second target at 103.65. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 102.4. The breach of this target will move the pair further downwards and one may expect the second target at 102.15. The pivot point stands at 102.6.
Resistance levels: 103.4 103.65 103.9 Support levels: 102.4 102.15 101.9
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
The USD/JPY consolidates after hitting five-year high of 103.92 Friday.The USD/JPY was undermined by position-squaring and selling of yen crosses amid diminished risk appetite (VIX rose 1.42% to 15.76, U.S. stocks ended roughly flat Friday as S&P slipped 0.01%, DJIA gained 0.1%). The market is cautious ahead of Tuesday-Wednesday’s Federal Reserve policy meeting. The USD/JPY was also weighed by Japan exporter sales. But the USD/JPY losses were tempered by demand from Japan importers; positive USD sentiment on increased odds that the Federal Reserve might start winding down its monthly $85 billion bond-buying program this week after recent upbeat U.S. data. There are also expectations that the Bank of Japan will expand its monetary easing measures further to support economic growth and to reach its 2% inflation target by the end of March 2016. Yen crosses are vulnerable to December HSBC China flash manufacturing PMI data on 01:45 GMT.
Overview:
Daily chart is mixed as MACD & stochastics are bullish, five- & 15-day moving averages advancing; but bearish shooting-star candlestick pattern has been completed on Friday.
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 103.4 and the second target at 103.65. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 102.4. The breach of this target will move the pair further downwards and one may expect the second target at 102.15. The pivot point stands at 102.6.
Resistance levels:
103.4
103.65
103.9
Support levels:
102.4
102.15
101.9
The material has been provided by InstaForex Company – www.instaforex.com
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