Overview:
USD/JPY is in range trade. The rate is undermined by profit-taking on yen-shorts after failed attempt to break above the psychological 100.00 line Monday; weaker USD sentiment after surprise 0.6% on-month drop in U.S. existing home sales to 4.92 million in March (vs. forecast for 0.8% rise) and fall in Chicago Fed's National Activity Index to minus 0.23 in March from plus 0.76 in February; Japan exporter sales. But USD/JPY losses tempered by Bank of Japan's aggressive easing measures to help reach its 2% inflation target in two years; demand from Japan importers and investment trusts. Daily chart is still positive-biased as MACD and stochastics are in bullish mode; five- and 15-day moving averages are rising.
Trading recommendations:
The pair is trading above its pivot point at 99.46. The pair is likely to trade in higher range as far as it remains above its pivot point. Short position below the pivot keep in view of the first target at 98.97, breach of this target will further move the pair downward and expect the second target at 98.10. Pivot point stands at 99.4. As far as price is above its pivot point, it will be most favorably to trade in higher range and buy position is recommended above its pivot with first target at 100 and second target at 100.6.
Support levels:
S1- 98.97 (Monday's low), S2 - 98.10 (Friday's low), S3 - 97.62 (Thursday's low)
Resistance levels:
R1 - 99.99-100.00 (Monday's four-year high-psychological line, R2 - 100.6, R3 - 100.8
