USD/JPY
Japan's economy has continued to recover fairly as a trend. The BOJ kept its policy firm. Mr. Kuroda gave the assurance that Japan is on track to meet the BOJ price target at 2%. The bank will purchase government bonds so that their amount outstanding will increase at an annual pace of about 50 trillion yen. The yen strengthens and US dollar drops to 3-month low.
USD/JPY made a low of 100.83, the previous low was at 100.76 levels in February. The Yen reached 50-week EMA at 100.73 and 200-day EMA. It pushed towards crucial resistance at 101.67 levels (May 16 high). This week if the pair closes below the 50-week EMA, the pair will drop to 97 levels.
The pair was rejected at 102.36 (50-day SMA), from that day it has been making lower lows. In yesterday's trading session, it was taken the strong support at daily and weekly moving averages. Yesterday's low will be very crucial in coming sessions. The initial resistance exists at 101.67 levels once the pair crosses this, it can fly up to 102.20 (50-day SMA). A day close below the 200-daily EMA will move the pair up to 100 and 99.5 easily, later it can extend more.
In the H4 chart, the pair is facing strong resistance at 101.70 (50-hour SMA). Above this it can fly up to 101.95, 102.20 and 102.36 levels. The RSI in the h4 chart favors buy side. As of now, in Asia's trading session, the pair opened on a bullish note, low strategy, the pair looks weak below 101.37 and can correct to 101.27, 101.18, 101.11 and 100.78 levels.
Recommendation- cmp 101.44
Buy above 101.70
A day close below 100.78, more noise is expected next week.
A week close below 100.73, more noise in the short term aiming at 97 levels.
All the levels given from MT5
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 22, 2014 . Thanks for your support on Technical analysis of USD/JPY for May 22, 2014
No comments:
Post a Comment