29.04.201317:06 Forex Analysis & Reviews: USD/JPY: Under pressure

Overview:
USD/JPY is trading in lower range. Liquidity was thin in Asia as financial markets in Japan and China were shut for holiday. USD/JPY undermined by negative USD sentiment after U.S. 1Q GDP grew at lower-than-expected 2.5% annual rate (vs. +3.2% forecast), heightening expectations that Federal Reserve will continue pushing forward its quantitative easing program of $85 billion in monthly bond purchases. USD/JPY is also weighed by buy-yen orders from Japan exporters; lower U.S. Treasury yields. But USD/JPY losses tempered by sell-yen orders from Japan importers; Bank of Japan's aggressive easing measures to help reach its 2% inflation target-BOJ Friday indicated it may take up to three years to reach its new inflation target, longer than market participants had expected; caution ahead of Wednesday's U.S. FOMC interest rate decision. Daily chart is negative-biased as stochastics is falling from overbought, MACD has staged bearish crossover against its exponential moving average.

Trading recommendation: 
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 97.21 in view, breach of this target will move further the pair downward and you should expect the second target at 96.6. Pivot point stands at 98.45. In case the price moves in opposite direction and returns from its support and moves above its pivot point then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 98.9 and the second target at 99.42.

Resistance levels:  
R1 - 98.9
R2 - 99.42 (Friday's high)
R3 - 199.57 (Thursday's high)
Support levels: 
S1 - 97.21 (April 17 low)
S2 - 96.6
S3 - 96.3