Overview:
USD/JPY is expected to trade with risks skewed higher after hitting three-and-a-half month low at 100.81 on Wednesday. It is underpinned by the yen-funded carry trades amid positive investor risk appetite (VIX fear gauge eased 8.1% to 11.91) as U.S. stocks rose overnight (S&P 500 closed up 0.81% at 1,888.03), backed by upbeat data out of the U.K. and FOMC meeting minutes. It indicating officials are in no hurry to raise interest rates as they raised some concerns about the housing market but kept intact their outlook for improving growth later this year. USD/JPY is also supported by the demand from Japan importers, higher U.S. Treasury yields. But USD/JPY gains are tempered by the comments from Bank of Japan Gov. Kuroda on Wednesday suggesting the central bank was in no hurry to take further easing action and Japan exporter sales.
Technical сomment:
Daily chart is mixed as MACD is bearish, five and 15-day moving averages are declining but stochastics is turning bullish at 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 101.90 and the second target at 102.10. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 101.05. A breach of this target will push the pair further downwards and one may expect the second target at 100.80. The pivot point is at 101.25.
Resistance levels:
101.90
102.10
102.45
Support levels:
101.05
100.80
100.30
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