Forex Depth Analysis: USD/JPY

JPY can drop as U.S. dollar set to recuperate

The yen and the dollar-trimmed losses after hitting multi-month lows on Friday on renewed risk appetite, as caution set in ahead of U.S. employment figures due later in the day. G20 leaders clinched a $1.1 trillion deal on Thursday to counter the worldwide economic crisis and the United States said it would change accounting rules to allow banks more flexibility in valuing toxic assets.
The Japanese and U.S. currencies edged up, however, as the market began looking ahead to U.S. jobs figures at 1230 GMT. The employment numbers are seen as a potential dampener of risk appetite, with economists in a Reuters survey expecting 650,000 jobs were lost and the unemployment rate hit a 26-year high of 8.5 percent in March.

Trading Tactics

Buy USD/JPY on signs of a bounce on pivot point.

The buying point is at 99.51; previous resistance is the take profit at 100.20; Pivot point is the stop loss at 98.75

The selling point is at 98.50; Fibonacci 61.8% is the take profit at 97.55; Fibonacci 23.6% is the stop loss at 99.20

Technical: U.S. dollar bounced on pivot point level and formed a new support level. A move back higher could set up a test at 100.20

The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text

Finotec Group Inc.
http://www.finotec.com/

Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.