Overview:
USD/JPY is expected to trade with bearish bias. USD/JPY is undermined by the lower U.S. Treasury yields (10-year hit six-and-a-half month low of 2.5249 Wednesday) and selling of yen crosses amid increased risk aversion (VIX fear gauge rose 0.33% to 12.17) as the U.S. stocks fell overnight (S&P 500 off 0.47%). USD/JPY is also weighed by the Japan exporter sales. But USD/JPY losses are tempered by the demand from Japan importers. Daily chart is tilting negative as MACD is in bearish mode, stochastics is turning bearish.
Technical сomment:
Daily chart is positive-biased as stochastics is rising from oversold zone, MACD is staging bullish crossover against its exponential moving average.
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. Short position is recommended with the first target at 101.60. A breach of this target will move the pair further downwards to 101.40. The pivot point stands at 102.15. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 102.35 and the second target at 102.55.
Resistance levels:
102.35
102.55
102.85
Support levels:
101.60
101.40
101.20
The material has been provided by InstaForex Company - www.instaforex.com
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