Technical analysis of USD/JPY for October 09, 2014 Fundamental Overview: USD/JPY is expected to trade with bearish bias.It is undermined by the negative dollar sentiment (ICE spot dollar index last 85.32 versus 85.66 early Wednesday) on dovish minutes of FOMC Sept. 16-17 meeting which showed the Federal Reserve was in no rush to raise interest rates and was concerned that the recent strength of the dollar could hurt U.S. exports and growth as well as putting downward pressure on already low levels of inflation. USD/JPY is also weighed by the lower U.S. Treasury yields (10-year at 2.318% versus 2.341% late Tuesday) and Japan exporter sales. But USD/JPY losses tempered by demand from Japan importers, yen-funded carry trades amid positive investor risk appetite (VIX fear gauge eased 12.15% to 15.11) as U.S. stocks surged overnight (S&P 500 closed up 1.75% at 1,968.89 for biggest single-day gain this year) on the dovish FOMC minutes. Technical comment: Daily chart is negative-biased as MACD and stochastics is bearish, five-day moving average is below 15-day MA and is declining. Trading recommendations: 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 107.35. A break of this target will move the pair further downwards to 107. The pivot point stands at 108. In case the price moves in the opposite direction and bounces back from the support level, then it will move 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 108.30 and the second target at 108.80. Resistance levels: 108.30 108.80 109.25 Support levels: 107.35 107 106.75 The material has been provided by InstaForex Company - instaforex
Posted on: Thu, 09 Oct 2014 13:44:49 +0000
Trending Topics
Recently Viewed Topics
© 2015