empty
 
 
29.04.2013 05:06 PM
USD/JPY: Under pressure

This image is no longer relevant

Overview:
USD/JPY is trading in lower range. Liquidity was thin in Asia as financial markets in Japan and China were shut for holiday. USD/JPY undermined by negative USD sentiment after U.S. 1Q GDP grew at lower-than-expected 2.5% annual rate (vs. +3.2% forecast), heightening expectations that Federal Reserve will continue pushing forward its quantitative easing program of $85 billion in monthly bond purchases. USD/JPY is also weighed by buy-yen orders from Japan exporters; lower U.S. Treasury yields. But USD/JPY losses tempered by sell-yen orders from Japan importers; Bank of Japan's aggressive easing measures to help reach its 2% inflation target-BOJ Friday indicated it may take up to three years to reach its new inflation target, longer than market participants had expected; caution ahead of Wednesday's U.S. FOMC interest rate decision. Daily chart is negative-biased as stochastics is falling from overbought, MACD has staged bearish crossover against its exponential moving average.

Trading recommendation:
 
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 97.21 in view, breach of this target will move further the pair downward and you should expect the second target at 96.6. Pivot point stands at 98.45. In case the price moves in opposite direction and returns from its support and moves above its pivot point then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 98.9 and the second target at 99.42.

Resistance levels:  
R1 - 98.9
R2 - 99.42 (Friday's high)
R3 - 199.57 (Thursday's high)
Support levels: 
S1 - 97.21 (April 17 low)
S2 - 96.6
S3 - 96.3  

 

 

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback