Overview:
USD/JPY is expected to consolidate after lackluster U.S. holiday-thinned trading on Friday. USD/JPY is buoyed by the positive dollar sentiment after Thursday's better-than-expected U.S. June non-farm payrolls and unemployment data. USD/JPY is also supported by buoyant U.S. Treasury yields and demand from Japan importers. But USD/JPY upside is limited by the Japan export sales and diminished risk appetite as Stoxx Europe 600 index shed 0.1% to 348.53 on Friday.
Technical comment:
The Daily chart is still positive-biased as MACD and stochastics are bullish, five-day moving average is rising above 15-day MA.
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 101.65. A breach of this target will move the pair further downwards to 101.50. The pivot point stands at 102.25. In case the price moves in the opposite direction and bounces back from the 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 102.45 and the second target at 102.65.
Resistance levels:
102 .45
102.65
102.95
Support levels:
101.65
101.50
101.35
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