USD/JPY: upside prevails (July 5,2013)
The USD/JPY to consolidate in higher range as markets await 1230 GMT U.S. June non-farm payrolls (expected to have added 160,000 jobs) & unemployment rate (expected to have eased to 7.5% from May’s 7.6%). The USD/JPY supported by reduced safe-haven appeal of yen as risk sentiment improved after the Bank of England and European Central Bank surprised markets Thursday by offering explicit guidance on low future interest rates; demand from Japan importers; Bank of Japan’s aggressive monetary easing measures to help reach its 2% inflation target. But the USD/JPY gains tempered by Japan exporter sales; yen demand on soft the GBP/JPY and EUR/JPY crosses; positions adjustment before weekend. Daily chart mixed as five-day moving average above 15-day MA and advancing, MACD bullish; but stochastics bearish at overbought.
The pair is trading above its pivot point. It is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, trading in higher range is most favorable and buy position is recommended above its pivot with the first target at 100.5 and the second target at 100.8. You should keep in view short position below the pivot keep of the first target at 99.45 , breach of this target will move the pair downward further may expect the second target at 99.1. The pivot point stands at 99.7.
R1 – 100.5
R2 – 100.8
R3 – 101.25
S1 – 99.45
S2 – 99.1
S3 – 98.62
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