USD/JPY is expected to consolidate with a bullish bias after hitting a four-day high of 122.88 on Friday. It is undermined by the flows to haven JPY and unwinding of JPY-funded carry trades amid diminished risk appetite as a new bailout deal for Greece remains uncertain after European leaders came to a compromise that negotiations on a new rescue could only start after Athens pass tough new laws, including pensions, by Wednesday and prepare for further rapid reforms that Greece had rejected until now. Traders are focused on China's stocks as the Shanghai Composite rebounded 4.57% on Friday, but market participants are watching if prices would resume falling given the huge losses inflicted on investors in recent days. USD/JPY is also weighed by the Japanese exports. But USD/JPY losses are tempered by the demand from Japan's importers and ultra-loose Bank of Japan's monetary policy.
Technical comment:
The daily chart is mixed as the MACD is bearish, but stochastics is bullish.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 123.45 and the second target at 123.70. In the alternative scenario, short positions are recommended with the first target at 122.60 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 122.20. The pivot point is at 121.90.
Resistance levels: 123.45 123.70 124
Support levels: 122.20 121.90 121.60
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on daily market trends and news you may visit via Technical analysis of USD/JPY for July 13, 2015 . Thanks for your support.
No comments:
Post a Comment