FxWirePro: USD/JPY Recovers Slightly from Fresh 18-Month Lows at 106.13, Good to Sell Rallies

FxWirePro: USD/JPY Recovers Slightly from Fresh 18-Month Lows at 106.13, Good to Sell Rallies

2 May 2016, 07:26
Roberto Jacobs
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FxWirePro: USD/JPY Recovers Slightly from Fresh 18-Month Lows at 106.13, Good to Sell Rallies

  • JPY bulls took a breather from their recent upsurge, USD/JPY is attempting a slight recovery from fresh 18-month lows at 106.13. 
  • Sluggish manufacturing activity reports from China released over the weekend weighed negatively on the markets. 
  • Most major Asian indices open in the red on risk-off, but lack of fresh fundamental triggers (as the Chinese markets remain closed in observance of Labour Day) sees some stabilization.  
  • With Japan’s markets closed for rest of the week, focus remains on the US docket. 
  • Key US employment data later this week, along with US ISM manufacturing PMI report.  
  • In the meantime, the sentiment around the global equities will play a key role. 
  • Technically upside in the pair lack momentum. RSI weak at 33. Major moving averages biased lower. 
  • Pair is holding strong trendline support at 106.10 levels, breaks below will drag the pair to 105.50 levels. 
  • Immediate support and resistance are located at 105.50 (Oct 16th 2014 low) and 107 respectively.

Recommendation: Good to sell rallies around 106.70, SL: 107.20, TP: 106.20/106/105.50 

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