Japanese GDP was weak for the second quarter with actual reading 2.6%. The yen quickly reacted to the news. It was not expected by the specialists. It can generate a new aggressive policy of the government of Shinzo Abe. Since Abe’s Liberal Democratic Party won power in December, the prime minister has set two aims, to end 15 years of deflation and revive growth. The first was a monetary policy that doubled purchases of bonds to pump cash into the economy. The second was a fiscal stimulus plan that boosted government spending.
According to our pivot levels, the pair is below the weekly pivot of 97.07. However, we believe that this pair could change its uptrend last week. So we must wait for a daily close above weekly pivot point of 0.97 with objectives to 100.41. In the Monthly Pivot graph you may notice that this pair is trading above the first monthly support, 96.48. So we recommend buying above this level with targets to monthly pivot point of 99.00. So you could choose one of the charts as the input signal.
Signals for August 12 - 17, 2013
Buy if the pair closes above 97.07 with take profits at 98.32 and 100.41 (W_R2) and stop loss is below 94.98.
Buy above Monthly support of 96.49 with take profit at 99.00 (M_PV) and stop loss at 94.98.
_____WEEKLY_____
Weekly - R3 = 101.66
Weekly - R2 = 100.41
Weekly - R1 = 98.32
Weekly Pivot = 97.07
Weekly - S1 = 94.98
Weekly - S2 = 93.73
Weekly - S3 = 91.64
____MONTHLY____
Monthly - R3 = 104.33
Monthly - R2 = 102.92
Monthly - R1 = 101.41
Monthly Pivot = 99.00
Monthly - S1 = 96.49
Monthly - S2 = 95.08
Monthly - S3 = 92.57
If you would like to get this indicator, feel free to contact me via skype: gerardofx or e-mail: gerardo.porras@analytics.instaforex.com
