Overview:
USD/JPY is tradig with bullish bias. Financial markets in U.S. are shut for holiday. USD/JPY is underpinned by yen-funded carry trades and reduced safe-haven appeal of yen as risk aversion diminishes after President Obama announced he would seek Congressional authorization for any strike against Syria, calming concerns over imminent military action; while China's official manufacturing PMI rose better than expected to 51.0 in August from 50.3 in Jul (versus 50.6 forecast). USD/JPY also supported by demand from Japan importers and investment trusts. But USD/JPY gains are tempered by Japan exporter sales; lingering worries over emerging markets amid expectations that Federal Reserve could start tapering its bond-purchase program this month. Daily chart is positive-biased as MACD and stochastics are in bullish mode.
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 far as the price is above its pivot point, trading in higher range is most favorable and buy position is recommended above its pivot, with the first target at 99.45 and the second target at 99.75. You should keep in view short position below the pivot keep of the first target at 98.45, breach of this target will move the pair downward further and one may expect the second target at 98.25. The pivot point stands at 98.75.
Resistance Levels:
R1 - 99.45
R2 - 99.7
R3 - 100
Support Levels:
S1 - 98.45
S2 - 98.25
S3 - 98
