Overview: USD/JPY is trading in lower range. The rate is undermined by softer dollar sentiment (ICE spot dollar index last 80.57 versus 80.72 early Monday) after FOMC voting member James Bullard said it’s a bit of struggle to imagine cutting the pace of bond buying so soon as he remains “nervous” that inflation readings remain well below the Fed’s official target; profit-taking on USD-longs as market participants trim risk exposure ahead of Thursday’s U.S. 3Q advance estimate GDP and Friday’s U.S. October non-farm payrolls report. USD/JPY is also weighed by lower U.S. Treasury yields; smaller-than-expected 1.7% on-month rise in U.S. September factory orders (versus +1.8% forecast); Japan exporter sales. But dollar sentiment was soothed by rise in ISM-NY Current Business Conditions index to 59.3 in October from 53.6 in September. USD/JPY losses are tempered by demand from Japan importers; yen-funded carry trades amid positive risk sentiment (VIX fear gauge eased 2.64% to 12.93; S&P rose 0.36% overnight) on prospects of continued U.S. stimulus after Fed’s Bullard’s comment that the U.S. central bank can be patient about paring its bond purchases, and as rise in China’s official services PMI to 14-month high 56.3 in October from 55.4 in September boost global growth outlook.
Technical comment: Daily chart is still positive-biased as MACD and stochastics are bullish; five-day moving average is above 15-day MA and advancing.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 98.05 in view; a breach of this target will move the pair further downwards to 97.75. The pivot point stands at 98.5. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 98.7 and the second target at 99.
Support levels:
98.05 97.75 97.35
Resistance levels: 98.7 99 99.35
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/JPY is trading in lower range. The rate is undermined by softer dollar sentiment (ICE spot dollar index last 80.57 versus 80.72 early Monday) after FOMC voting member James Bullard said it’s a bit of struggle to imagine cutting the pace of bond buying so soon as he remains “nervous” that inflation readings remain well below the Fed’s official target; profit-taking on USD-longs as market participants trim risk exposure ahead of Thursday’s U.S. 3Q advance estimate GDP and Friday’s U.S. October non-farm payrolls report. USD/JPY is also weighed by lower U.S. Treasury yields; smaller-than-expected 1.7% on-month rise in U.S. September factory orders (versus +1.8% forecast); Japan exporter sales. But dollar sentiment was soothed by rise in ISM-NY Current Business Conditions index to 59.3 in October from 53.6 in September. USD/JPY losses are tempered by demand from Japan importers; yen-funded carry trades amid positive risk sentiment (VIX fear gauge eased 2.64% to 12.93; S&P rose 0.36% overnight) on prospects of continued U.S. stimulus after Fed’s Bullard’s comment that the U.S. central bank can be patient about paring its bond purchases, and as rise in China’s official services PMI to 14-month high 56.3 in October from 55.4 in September boost global growth outlook.
Technical comment:
Daily chart is still positive-biased as MACD and stochastics are bullish; five-day moving average is above 15-day MA and advancing.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 98.05 in view; a breach of this target will move the pair further downwards to 97.75. The pivot point stands at 98.5. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 98.7 and the second target at 99.
Support levels:
98.05
97.75
97.35
Resistance levels:
98.7
99
99.35
The material has been provided by InstaForex Company – www.instaforex.com
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