Overview:
USD/JPY is trading in higher range. The rate is underpinned by positive dollar sentiment on Friday's stronger-than-expected U.S. April non-farm payrolls report and on buoyant U.S. stocks overnight (S&P rose 0.19% on Monday to finish at record high of 1617.5); widening USD-JPY interest differential; Bank of Japan's aggressive easing measures to help reach its 2% inflation target; demand from Japan importers and investment trusts. But USD/JPY gains tempered by Japan exporter sales. Daily chart is mixed as MACD is bearish; but stochastics is in bullish mode; possible bullish ascending flat triangle is evolving with potential for topside breakout.
Trading recommendations:
The pair is trading above its pivot point. It 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, trading in higher range is most favourable and buy position is recommended above its pivot with the first target at 99.45 and the second target at 99.57. You should keep in view short position below the pivot keep of the first target at 98.8, breach of this target will move the pair downward further and expect the second target at 98.55. The pivot point stands at 99.
Resistance levels:
R1 - 99.45 (Monday's high)
R2 - 99.57 (April 25 high)
R3 - 99.77 (April 24 high)
Support levels:
S1 - 98.8
S2 - 98.55
S3 - 98.35