Overview:
USD/JPYis going to consolidate with bullish bias after hitting the six-month high of 102.37 Thursday. The liquidity is low as the U.S. financial markets closed early (at 1800 GMT) after Thanksgiving. USD/JPY is underpinned by weak yen sentiment amid expectations that the Bank of Japan will take further easing steps if economic growth stumbles and deflationary pressures return; Japan portfolio-flow data shows that residents bought net Y1,405.6 billion of foreign bonds last week, sharply higher than the Y351.5 billion purchases in the previous week. USD/JPY is also supported by the demand from Japan importers and investment trusts. But USD/JPY gains are tempered by Japan's exporter sales; positions adjustment before weekend.
Technical Comment:
The daily chart positive-biased as MACD is bullish, stochastics stays elevated at overbought; 5- and 15-day moving averages are advancing.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 102.65 and the second target at 102.9. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 101.15. The breach of this target will move the pair further downwards and one may expect the second target at 100.95. The pivot point stands at 101.9.
Resistance levels: 102.65 102.9 103.25
Support levels: 101.6 101.15 100.95
