The USD/JPY pair is at a key area. It is very close to the psychological level of 100 yens. It is likely that in this area it finds a very strong support. If you look at the second graph of the monthly pivot, the pair is trading just above the first monthly support, 100.72. Therefore, this area is key for the pair to continue falling to the levels of the second monthly resistance, 104.01. But we must wait for a daily close above the weekly pivot of 101.89. If the pair rejects this level we can sell the pair, with goals in the first support, 100.05. Therefore, we recommend the following signal will be valid for this week.
Signals for May 27 - 31, 2013
Buy if it closes in daily charts above 101.72 (M_R1) and buy if closes above 101.89 (W_PPV) with take profits at 103.11 (W_R1) and 104.95 (W_R2), stop loss is below 101.50.
Sell if pullback is around 101.89 (W_PPV) with full cover at 100.05 (W_S1), stop loss is above 102.00.
____WEEKLY_____
Weekly - R3 = 106.17
Weekly - R2 = 104.95
Weekly - R1 = 103.11
Weekly Pivot = 101.89
Weekly - S1 = 100.05
Weekly - S2 = 98.83
Weekly - S3 = 96.99
____MONTHLY____
Monthly - R3 = 108.09
Monthly - R2 = 104.01
Monthly - R1 = 100.72
Monthly Pivot = 96.64
Monthly - S1 = 93.35
Monthly - S2 = 89.27
Monthly - S3 = 85.98
If you would like to get this indicator, feel free to contact me via skype: gerardofx or e-mail: gerardo.porras@analytics.instaforex.com