Overview:
USD/JPY is trading with bullish bias. USD/JPY is supported after G-20 decided not to criticize Japan for is recent efforts to jumpstart its economy that has sent the yen sharply lower. USD/JPY is also supported by demand from Japan importers and investment trusts; aggressive BOJ monetary easing stance -- PM Abe quoted in reports Monday that purchasing foreign bonds was among the options before BOJ; positive USD sentiment after Friday's upbeat Empire State's business conditions index and University of Michigan preliminary consumer sentiment data. But USD/JPY gains tempered by Japan exporter sales. USD/JPY daily chart is mixed as MACD in bearish mode, but stochastics is bullish; five-day moving average is meandering sideways above rising 15-day MA.
Preference:
Buy above 93.25 with 94.45 and 95 in sight.
Resistance levels:
R1 - 94.41-94.46 (Feb. 12 high-Feb. 11 two-and-a-half year high)
R2 - 94.99 (May 4, 2010, top)
R3 - 95.25
Alternative scenario:
Sell below 93.25. The downside penetration of 93.25 will call for a slide towards 92.75 and 92.15.
Support levels:
S1 - 92.75
S2 - 92.22-92.17 (Friday's low-Feb. 8 low)
S3 - 91.61 (Feb. 1 low)
Technical comment:
The pair is facing a pullback on its support ahead of a rebound, the RSI stands above its oversold area and is turning up.
