USD/JPY is trading in lower range. USD/JPY is underpinned by negative yen sentiment as confidence rises over Prime Minister Abe’s ultra-loose monetary policy to boost the economy–after Japan’s 1Q GDP growth was revised upward to 4.1% from +3.5% preliminary reading. USD/JPY is also supported by positive dollar sentiment after stronger-than-expected U.S. May non-farm payrolls; higher U.S. Treasury yields as robust U.S. May jobs data kept market speculation alive that the Federal Reserve could begin winding down its bond purchases when it meets this month; demand from Japan importers and investment trusts; Bank of Japan’s aggressive easing measures to help reach its 2% inflation target. But USD/JPY gains are tempered by Japan exporter sales. Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and declining; but stochastics is rising from oversold.
Trading recommendations:
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 96.3 in view, breach of this target will move further the pair downward and you should expect the second target at 95.5. Pivot point stands at 97.95. In case the price moves in opposite direction and returns from its support and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 98.55 and the second target at 99.5.
Support Levels: S1 – 96.3 S2 – 95.5 S3 – 95
Resistance Levels: R1 – 98.55 R2 – 99.5 R3 – 100
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/JPY is trading in lower range. USD/JPY is underpinned by negative yen sentiment as confidence rises over Prime Minister Abe’s ultra-loose monetary policy to boost the economy–after Japan’s 1Q GDP growth was revised upward to 4.1% from +3.5% preliminary reading. USD/JPY is also supported by positive dollar sentiment after stronger-than-expected U.S. May non-farm payrolls; higher U.S. Treasury yields as robust U.S. May jobs data kept market speculation alive that the Federal Reserve could begin winding down its bond purchases when it meets this month; demand from Japan importers and investment trusts; Bank of Japan’s aggressive easing measures to help reach its 2% inflation target. But USD/JPY gains are tempered by Japan exporter sales. Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and declining; but stochastics is rising from oversold.
Trading recommendations:
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 96.3 in view, breach of this target will move further the pair downward and you should expect the second target at 95.5. Pivot point stands at 97.95. In case the price moves in opposite direction and returns from its support and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 98.55 and the second target at 99.5.
Support Levels:
S1 – 96.3
S2 – 95.5
S3 – 95
Resistance Levels:
R1 – 98.55
R2 – 99.5
R3 – 100
The material has been provided by InstaForex Company – www.instaforex.com
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