USD/JPY is expected to trade with bullish outlook. From a technical view, the pair is heading upward, backed by its rising 20-period and 50-period moving averages. The previous key resistance at 104.75 plays a support role now, and should limit any downward attempts. The relative strength index is mixed to bullish above its neutrality area at 50. On Thursday, the US stocks posted modest losses at close as gains in healthcare shares were offset by losses in real estate, consumer discretionary and utilities sectors. The Dow Jones Industrial Average declined 29 points (-0.2%) to 18,169, the S&P 500 dropped 6 points (-0.3%) to 2,133, while the Nasdaq Composite was down 34 points (-0.7%) to 5,215.
On the economic front, the US Commerce Department reported durable goods orders declined 0.1% on month in September (vs. +0.0% expected). The Labor Department announced that initial jobless claims amounted to 258,000 in the week ended October 22 (vs. 256K expected). The National Association of Realtors said September pending home sales increased 1.5% on month in September (vs. +1.1% expected).
Hence, above 104.75 look for further advance to 105.55 and 105.95 in extension.
Trading Recommendation: The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 105.55 and the second one at 105.95. In the alternative scenario, short positions are recommended with the first target at 104.35 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 104.00. The pivot point lies at 104.75.
Resistance levels: 105.55, 105.95, 106.25
Support levels: 104.35, 104.00, 103.65
The material has been provided by InstaForex Company – www.instaforex.com
The post Technical analysis of USD/JPY for October 28, 2016 appeared first on forex-analytics.press.