Overview: The USD/JPY to trade with bearish bias. The USD/JPY is undermined by negative dollar sentiment as uncertainty rise over when the Federal Reserve could start reducing its bond purchases. This after Chairman Bernanke said the central bank’s highly accommodative monetary policy is needed for the foreseeable future and it is likely that the Fed won’t raise interest rates “for some time,” even after the unemployment rate reaches 6.5%; while the FOMC minutes showed that “many” voting members wanted to see further improvement in the jobs market first before asset purchases slow down, and some said they would need an acceleration in the economy as well as more jobs growth before starting tapering. The USD/JPY was also weighed by Japan exporter sales. But the USD/JPY losses tempered by yen-funded carry trades amid increased investor risk appetite on prospects of prolonged Fed’s stimulus; demand from Japan importers; and the Bank of Japan’s aggressive monetary easing measures to help reach its 2% inflation target. The daily chart is negative-biased as stochastics falling from overbought; positive MACD histogram bars contracting; bearish parabolic stop-and-reverse signal hit at 99.41 this morning.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in lower range as far as it remains below its pivot point. The short position is recommended with the first target at 8.2 in view; the breach of this target will move the pair downward further and you should expect the second target at 97.6. The pivot point stands at 99.55. In case the price moves in the opposite direction. 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 100 and the second target at 100.45.
Overview:
The USD/JPY to trade with bearish bias. The USD/JPY is undermined by negative dollar sentiment as uncertainty rise over when the Federal Reserve could start reducing its bond purchases. This after Chairman Bernanke said the central bank’s highly accommodative monetary policy is needed for the foreseeable future and it is likely that the Fed won’t raise interest rates “for some time,” even after the unemployment rate reaches 6.5%; while the FOMC minutes showed that “many” voting members wanted to see further improvement in the jobs market first before asset purchases slow down, and some said they would need an acceleration in the economy as well as more jobs growth before starting tapering. The USD/JPY was also weighed by Japan exporter sales. But the USD/JPY losses tempered by yen-funded carry trades amid increased investor risk appetite on prospects of prolonged Fed’s stimulus; demand from Japan importers; and the Bank of Japan’s aggressive monetary easing measures to help reach its 2% inflation target. The daily chart is negative-biased as stochastics falling from overbought; positive MACD histogram bars contracting; bearish parabolic stop-and-reverse signal hit at 99.41 this morning.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in lower range as far as it remains below its pivot point. The short position is recommended with the first target at 8.2 in view; the breach of this target will move the pair downward further and you should expect the second target at 97.6. The pivot point stands at 99.55. In case the price moves in the opposite direction. 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 100 and the second target at 100.45.
Support levels:
S1 – 98.2
S2 – 97.6
S3 – 97.3
Resistance levels:
R1 – 100
R2 – 100.45
R3 – 100.9
The material has been provided by InstaForex Company – www.instaforex.com
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