Overview:
USD/JPY is expected to trade in higher range. It is underpinned by the broadly stronger dollar undertone (ICE spot dollar index last 79.86 versus 79.43 early Friday) on higher U.S. Treasury yields, Wall Street gains Friday (DJIA finished up 0.2% at record-high closing of 16,583.34), bigger-than-expected 1.1% rise in U.S. March wholesale inventories (versus +0.5% forecast). USD/JPY is also supported by the demand from Japan importers. But USD/JPY gains are tempered by the Japan exporter sales and concerns over the crisis in Ukraine.
Technical сomment:
Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and is declining; but stochastics is turning bullish near oversold zone.
Trading recommendation:
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 102.20 and the second target at 102.40. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 101.60. A breach of this target will push the pair further downwards and one may expect the second target at 101.40. The pivot point is at 101.75.
Resistance levels:
102.20
102.40
102.80
Support levels:
101.60
101.40
101
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Technical analysis of USD/JPY for May 12, 2014 . Thanks for your support on Technical analysis of USD/JPY for May 12, 2014
No comments:
Post a Comment