FX.co ★ USD/JPY: Upside

Overview:
USD/JPY is consolidating in higher range as markets await Bank of Japan's monetary policy decision (announcement expected between 03:00 GMT and 0500 GMT): BOJ expected to stay pat on monetary policy, but market participants see central bank taking additional stimulus measures in April after governor nominee Haruhiko Kuroda takes the post. USD/JPY is underpinned by positive USD sentiment and higher U.S. Treasury yields after ADP reported bigger-than-expected 198,000 gain in U.S. private-sector jobs in February (vs. +175,000 forecast), raising expectations for upbeat U.S. nonfarm payrolls report Friday; U.S. Federal Reserve Beige Book showing growth in most of the Fed's 12 districts in January and early February. USD/JPY is also supported by demand from Japan importers and investment trusts; expectations of more monetary easing measures from BOJ in coming months to achieve 2% inflation target; yen-funded carry trades amid positive risk appetite as DJIA hit fresh record high overnight. But USD/JPY gains tempered by Japan exporter sales; JPY repatriation ahead of Japanese fiscal yearend.
Preference:
Buy above 93.65 with first target at 94.3 and second target at 94.5.
Resistance levels:
R1 - 94.77 (two-and-a-half year high hit Feb. 25)
R2 - 94.99 (May 4, 2010 top)
R3 - 95.25
Alternative scenario:
Sell below 93.65 and look for downside targets at 93.45 and 93.
Support levels:
S1 - 93.45
S2 - 92.99-92.92 band (Wednesday's low-Tuesday's low)
S3 - 92.44 (Friday's low)
Technical comment:
Daily chart is mixed as MACD is bearish, but stochastics is in bullish mode; five-day moving average is above 15-day MA and rising.