FX.co ★ USD/JPY: Consolidate

Overview:
USD/JPY is consolidating with bearish bias after hitting three-and-a-half year high of 96.67 this morning. The rate is underpinned by Bank of Japan's aggressive monetary easing stance-BOJ's Ishida Monday pledged to continue "powerful monetary easing" to reach the central bank's new 2% inflation target; yen-funded carry trades amid positive risk tolerance (VIX fear gauge fell to 11.5 overnight, its lowest level since April 17, 2007; S&P up 0.32%) as Friday's unexpectedly strong U.S. February jobs report continued to reverberate and investors shrugged off dismal Chinese economic data. USD/JPY also supported by higher U.S. Treasury yields; 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, although latter is at overbought; five-day moving average is above 15-day MA and rising.
Recommendation:
Sell below the pivot point 96.4 with first target at 95.75 and second target at 95.45.
Support levels:
S1 - 94.79 (Friday's low)
S2 - 95.45
S3 - 95.05
Alternative scenario:
Buy above 96.3 with upside targets at 96.8 and 97.15 as targets.
Resistance levels:
R1 - 96.80
R2 - 97.15
R3 - 97.35