Overview: USD/JPY is consolidating with bullish bias as markets await U.S. March Non-Farm payrolls (expected to have increased by 200,000) and unemployment rate (expected to have stayed at 7.7%). USD/JPY surged three-and-a-half yen on Thursday to 96.42 after Bank of Japan exceeded market expectations with the scale and pace of expansion in its asset-purchase program aimed at ending deflation in the Japanese economy. USD/JPY is also supported by demand from Japan importers and investment trusts; yen-funded carry trades amid positive global risk sentiment (VIX fear gauge eased 2.25% to 13.89; S&P rose 0.28 overnight) on aggressive stimulus measures from BOJ. But USD sentiment dented after latest U.S. weekly jobless claims unexpectedly jumped 28,000 to four-month high of 385,000, leading some market participants to trim expectations for today’s non-farm payrolls. USD/JPY gains also tempered by Japan exporter sales; positions adjustment before weekend. Daily chart is positive-biased as stochastics is rising from oversold; MACD is staging bullish crossover against its exponential moving average; bullish parabolic stop-and-reverse signal was hit at 95.39 on Thursday. Recommendation: Buy above 95.65 with upside targets at 97 and 97.77. Resistance levels: R1 – 97.00 R2 – 97.77 (Aug. 7, 2009 reaction high) R3 – 98.00 Alternative scenario: Sell below 95.65 with downside targets at 95 and 94.4. Support levels: S1 – 95.00 S2 – 94.4 S3 – 94
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/JPY is consolidating with bullish bias as markets await U.S. March Non-Farm payrolls (expected to have increased by 200,000) and unemployment rate (expected to have stayed at 7.7%). USD/JPY surged three-and-a-half yen on Thursday to 96.42 after Bank of Japan exceeded market expectations with the scale and pace of expansion in its asset-purchase program aimed at ending deflation in the Japanese economy. USD/JPY is also supported by demand from Japan importers and investment trusts; yen-funded carry trades amid positive global risk sentiment (VIX fear gauge eased 2.25% to 13.89; S&P rose 0.28 overnight) on aggressive stimulus measures from BOJ. But USD sentiment dented after latest U.S. weekly jobless claims unexpectedly jumped 28,000 to four-month high of 385,000, leading some market participants to trim expectations for today’s non-farm payrolls. USD/JPY gains also tempered by Japan exporter sales; positions adjustment before weekend. Daily chart is positive-biased as stochastics is rising from oversold; MACD is staging bullish crossover against its exponential moving average; bullish parabolic stop-and-reverse signal was hit at 95.39 on Thursday.
Recommendation:
Buy above 95.65 with upside targets at 97 and 97.77.
Resistance levels:
R1 – 97.00
R2 – 97.77 (Aug. 7, 2009 reaction high)
R3 – 98.00
Alternative scenario:
Sell below 95.65 with downside targets at 95 and 94.4.
Support levels:
S1 – 95.00
S2 – 94.4
S3 – 94
The material has been provided by InstaForex Company – www.instaforex.com
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