Fundamental overview:
USD/JPY is expected to trade in a higher range. It is underpinned by the broadly firmer dollar undertone (ICE spot dollar index last 88.00 versus 87.67 early Thursday) as oil prices plunge after OPEC’s decision to stick to its existing target for oil production rather than cutting it in response to tumbling oil prices. USD/JPY is also supported by the demand from Japan’s importers and Bank of Japan’s large-scale easing policy. But USD/JPY gains are tempered by Japan’s export sales and positions adjustment ahead of the weekend. Financial markets in U.S. were close early Friday after Thanksgiving.
Technical comment:
Daily chart is mixed as MACD and stochastics are bearish, but five-day moving average is meandering sideways above rising 15-day moving average.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 118.90 and the second target at 119.30. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 117.60. A break of this target would push the pair further downwards and one may expect the second target at 117. The pivot point is at 117.85.
Resistance levels:
118.90
119.30
119.75
Support levels:
117.60
117
116.65
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Performed by Ahsan Aslam, Analytical expert InstaForex Group © 2007-2014 |
Technical analysis of USD/JPY for November 28, 2014
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