Overview: USD/JPY will trade in lower range, undermined by stronger yen demand sparked by fears that Japan may not be able to continue its aggressive monetary easing after the Bank of Japan Tuesday refrained from introducing new measures to ease market volatility. USD/JPY is also affected by flows to safe-haven JPY and unwinding of JPY-funded carry trades amid increased risk aversion (VIX fear gauge rose 10.56% to 17.07, S&P fell 1.02% overnight) amid investor worries that major central banks have reached the limits of their bond-buying stimulus programs. Japan’s exports has also a significant impact on the currency pair quotes. But USD/JPY losses are tempered by demand from Japan importers. Daily chart is negatively biased as MACD is in bearish mode, stochastics is turning bearish, five-day moving average is below 15-day MA and declining.
Trading recommendations:
The pair is trading below its pivot point. The pair is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 96.15 in view, breach of this target will move the pair further downward and you should expect the second target at 95.5. Pivot point stands at 97.3. In case the price moves in the 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 97.75 and the second target at 98.55.
Support Levels: S1 – 96.15 S2 – 95.5 S3 – 94.95
Resistance Levels: R1 – 97.75 R2 – 98.55 R3 – 99
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/JPY will trade in lower range, undermined by stronger yen demand sparked by fears that Japan may not be able to continue its aggressive monetary easing after the Bank of Japan Tuesday refrained from introducing new measures to ease market volatility. USD/JPY is also affected by flows to safe-haven JPY and unwinding of JPY-funded carry trades amid increased risk aversion (VIX fear gauge rose 10.56% to 17.07, S&P fell 1.02% overnight) amid investor worries that major central banks have reached the limits of their bond-buying stimulus programs. Japan’s exports has also a significant impact on the currency pair quotes. But USD/JPY losses are tempered by demand from Japan importers. Daily chart is negatively biased as MACD is in bearish mode, stochastics is turning bearish, five-day moving average is below 15-day MA and declining.
Trading recommendations:
The pair is trading below its pivot point. The pair is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 96.15 in view, breach of this target will move the pair further downward and you should expect the second target at 95.5. Pivot point stands at 97.3. In case the price moves in the 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 97.75 and the second target at 98.55.
Support Levels:
S1 – 96.15
S2 – 95.5
S3 – 94.95
Resistance Levels:
R1 – 97.75
R2 – 98.55
R3 – 99
The material has been provided by InstaForex Company – www.instaforex.com
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