FX.co ★ USD/JPY: Upside prevails

Overview:

USD/JPY is trading in higher range. The rate is underpinned by positive USD sentiment on higher U.S. equities (S&P rose 1.04% overnight) as upbeat corporate reports, higher-than-expected 0.7% rise in U.S. February house-price index (vs. +0.6% forecast) and expectations of continued stimulus measures from the world's major central banks outweighed dismal manufacturing data out of China and Germany, drop in Markit flash U.S. manufacturing PMI to 52.0 in April from March's final 54.6, and decline in Richmond Fed's manufacturing current business conditions index to minus 6 in April from plus 3 in March. USD/JPY is also supported by weak yen sentiment on Bank of Japan's aggressive easing measures to help reach its 2% inflation target in two years; demand from Japan importers and investment trusts. But USD/JPY gains tempered by Japan exporter sales. Daily chart is positive-biased as MACD and stochastics are bullish; five- and 15-day moving averages are rising.

Trading recommendations:
The pair is trading above its pivot point at 99.32. The pair is likely to trade in higher range as far as it remains above its pivot point. As far as the 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 99.99 and second target at 100.25. You should keep in view short position below the pivot keep of the first target at 150.5, breach of this target will move the pair downward further and expect the second target at 98.48. Pivot point stands at 98.10.

Resistance levels:
R1 - 99.99 (Monday's four-year high), R2 - 100.25, R3 - 100.6
Support levels:
S1 - 98.48 (Tuesday's low), S2 - 98.10 (Friday's low), S3 - 97.62 (Thursday's low)