Before non-farm payrolls data on Friday, the pair became strong and moved away from the level of 100 yen. However, after the data the dollar rose above the 101 yen line due to the fact that payroll figures were higher than anticipated. On the other hand, Japan's monetary policy is to continue to weaken the yen, and observing the weekly chart of the pivots, we can expect a small correction to the level of 100.50 weekly pivot area. At this level we expect it to weaken to 103.90 level in the short term. At the same time, if the pair enters the area below 100 yen, it will be the bullish momentum for the pair, with objectives in the area of 98.48 yen. Therefore, we see the following signals valid for this week.
Signals for July 08 - 13, 2013
Buy if the pair rebounds around 100.52 with take profit at 101.87 and 102.56 (W_R2) and stop loss below 99.70
Sell if the pair closes below 99.80, with take profit at 98.48 and 97.79 stop loss above 100.52
_____WEEKLY_____
Weekly - R3 = 103.91
Weekly - R2 = 102.56
Weekly - R1 = 101.87
Weekly Pivot = 100.52
Weekly - S1 = 99.83
Weekly - S2 = 98.48
Weekly - S3 = 97.79
____MONTHLY____
Monthly - R3 = 108.89
Monthly - R2 = 104.80
Monthly - R1 = 101.97
Monthly Pivot = 97.88
Monthly - S1 = 95.05
Monthly - S2 = 90.96
Monthly - S3 = 88.13
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