FX.co ★ USD/JPY: Weekly and monthly pivot point and signal - for May 13 - 18, 2013

The USD/JPY pair is located above the psychological level of 100 yen to the dollar. The G7 meeting that took place during the weekend served to support Japan's position in an effort to devalue the yen. The explicit support of the leading powers stretched bearish rally of this currency in the early hours of week, reaching 102.15, maximum value in pair in four years. This pair has front at the level of 1.0285, the first weekly resistance. Given that it is already showing a bit overbought, it is likely that this level is very strong, pushing the pair lower. However, given that the 100.72 area is the weekly pivot point, it is likely that there can buy it back to the R1 objectives. If the pair breaks the PPV, we recommend to keep selling to first weekly support level around 99.46. Therefore, we recommend the following signal will be valid for this week.

Signals for May 13 - 18, 2013

Buy if it rebounds around 100.72 (W_PPV) with take profit at 102.85 (W_R1), stop loss is below 100.00.

Sell if pullback is around 102.85 (W_R1) with partial cover at 100.72 (W_PPV) and full cover 99.46 (W_S1), stop loss is above 103.00.

____WEEKLY_____
Weekly - R3 = 106.24
Weekly - R2 = 104.11
Weekly - R1 = 102.85
Weekly Pivot = 100.72
Weekly - S1 = 99.46
Weekly - S2 = 97.33
Weekly - S3 = 96.07

If you would like to get this indicator, feel free to contact me via e-mail: gerardo.porras@analytics.instaforex.com

____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