Overview: USD/JPY is trading in higher range. The rate is underpinned by positive dollar sentiment (ICE spot dollar index last 81.30 versus 80.82 early Friday) after stronger-than-expected U.S. October jobs report (non-farm payrolls increased 204,000 versus +120,000 forecast, unemployment rate came in at 7.3% versus 7.4% forecast) heightened expectations that the Federal Reserve could start tapering its $85 billion-a-month quantitative easing program as soon as next month at the Dec. 17-18 meeting. USD/JPY is also supported by demand from Japan importers and investment trusts; higher U.S. Treasury yields; yen-funded carry trades amid positive risk appetite (VIX fear gauge eased 7.26% to 12.9; S&P surged 1.34% Friday) as investors bet the U.S. economy would be strong enough to withstand a Fed’s withdrawal of stimulus, while strong data out of China (China’s industrial production rose 10.3% on year in October, beating +10.0% forecast; exports rebounded 5.6% on year in October after falling 0.3% in September) boosted the outlook for global growth. But dollar sentiment dented by worse-than-expected drop in University of Michigan November sentiment index to 72.0 in early November (versus 74.4 forecast) for lowest reading since December 2011. USD/JPY gains are also tempered by Japan exporter sales. Bond markets in U.S. are shut today for Veterans Day.
Technical Comment: Daily chart is mixed as MACD is bullish, five- and 15-day moving averages are rising; but stochastics is bearish near overbought.
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 99.65 and the second target at 99.95. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 98.55 the breach of this target will move the pair further downwards and one may expect the second target at 98.25. The pivot point stands at 98.35.
Resistance levels: 99.65 99.95 100.35 Support levels: 98.55 98.25 97.95
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/JPY is trading in higher range. The rate is underpinned by positive dollar sentiment (ICE spot dollar index last 81.30 versus 80.82 early Friday) after stronger-than-expected U.S. October jobs report (non-farm payrolls increased 204,000 versus +120,000 forecast, unemployment rate came in at 7.3% versus 7.4% forecast) heightened expectations that the Federal Reserve could start tapering its $85 billion-a-month quantitative easing program as soon as next month at the Dec. 17-18 meeting. USD/JPY is also supported by demand from Japan importers and investment trusts; higher U.S. Treasury yields; yen-funded carry trades amid positive risk appetite (VIX fear gauge eased 7.26% to 12.9; S&P surged 1.34% Friday) as investors bet the U.S. economy would be strong enough to withstand a Fed’s withdrawal of stimulus, while strong data out of China (China’s industrial production rose 10.3% on year in October, beating +10.0% forecast; exports rebounded 5.6% on year in October after falling 0.3% in September) boosted the outlook for global growth. But dollar sentiment dented by worse-than-expected drop in University of Michigan November sentiment index to 72.0 in early November (versus 74.4 forecast) for lowest reading since December 2011. USD/JPY gains are also tempered by Japan exporter sales. Bond markets in U.S. are shut today for Veterans Day.
Technical Comment:
Daily chart is mixed as MACD is bullish, five- and 15-day moving averages are rising; but stochastics is bearish near overbought.
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 99.65 and the second target at 99.95. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 98.55 the breach of this target will move the pair further downwards and one may expect the second target at 98.25. The pivot point stands at 98.35.
Resistance levels:
99.65
99.95
100.35
Support levels:
98.55
98.25
97.95
The material has been provided by InstaForex Company – www.instaforex.com
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