Overview:
USD/CHF is going to consolidate with bearish bias after hitting the 9-month high of 0.9838 Wednesday. The currency pair is pressured by positive dollar sentiment, Swiss National Bank President Thomas Jordan announcement that the SNB is open to weakening its currency further against the euro and would even consider negative interest rates if such moves were necessary, and the franc sales on buoyant EUR/CHF cross. Daily chart is positively biased as MACD is bullish, stochastics are staying elevated at overbought area; five- and 15-day moving averages are advancing. 

Trading recommendations:  
The pair is trading below its pivot point. It 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 0.9633 in view, breach of this target will move the pair further downward and you should expect the second target at 0.9576. Pivot point stands at 0.9725. In case the price moves in the 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 0.9775 and the second target at 0.9838.  

Resistance Levels:
R1 - 0.9775
R2 - 0.9838 (Wednesday's high)
R3 - 0.9898 (Aug. 2, 2012 high)
Support Levels:
S1 - 0.9633 (Friday's low)
S2 - 0.9576 (May 16 low)
S3 - 0.9517 (May 14 low). 

Overview:
NZD/USD is set to consolidate with the bullish bias after hitting 6-month low of 0.8053 Wednesday. The pair is hurt by positive dollar sentiment, increased risk aversion, and weaker commodity prices. But NZD/USD losses tempered by NZD-USD yield gap. Kiwi is vulnerable to China's HSBC flash manufacturing PMI data for May. Daily chart is negatively biased as MACD is bearish, stochastics are staying suppressed in the oversold area, five- and 15-day moving averages are falling. 

Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in the higher range as far as it remains above its pivot point. While the price is above its pivot point, trading in higher range is most favourable and buy position is recommended above its pivot with the first target at 0.8585 and the second target at 0.8642. You should keep in view short position below the pivot keep of the first target at 0.851, the breach of this target will move the pair downward further and expect the second target at 0.8458. The pivot point stands at 0.855.  

Support Levels:
S1 - 0.8000 
S2 - 0.796
S3 - 0.7909 (Sep 5 reaction low)
Resistance Levels:
R1 - 0.811
R2 - 0.8175
R3 - 0.8205-0.8212 band (Wednesday's high-Tuesday's high)

Support level around 1.0016-0.9995 (61.8% Fibonacci) provided evident bullish steam for the pair to step above 1.0300. Hence, there might be further bullish pressure to test 1.0430 level.

It is important to note that the pair established an ascending bottom and top at 1.0150 and 1.0210 respectively. Those levels will probably provide support for the pair on the next visit.

As long as the USD/CAD bias remains bullish, the pair should not step below 1.0260 with a fairly good BUY entry at retesting of 1.0260. 

Consolidation above 1.0340-1.0320 opens the way towards 1.0430 which if breached, the pair will be pushed higher towards 1.0540 levels.

The weak bullish structure with integrated swings led to the price fall after the upper limit of the movement channel 1.5590-1.5600 had provided a considerable resistance for the pair.

The GBP/USD pair broke down important support level 50% Fibonacci which came to meet the pair at 1.5315 with the lower limit of the depicted bullish channel which opened the way for the pair towards Fibo 61.8% located at 1.5245 which was broken too.

On Monday, failure of the pair to have 4H closure again above 1.5250, cleared the way towards 1.5033 (Fibonacci 100%) which showed some bullish presence yesterday.

As long as the market bias remains bearish, the GBP/USD pair should not reach above 1.5200 which will probably provide a valid SELL entry on retesting (downtrend line and 61.8% Fibonacci) with SL located just above 1.5250.

We talked about consolidation of the pair within the price range 1.2950 -1.3240 and the importance of breakout off this zone for the liberation of the pair.

EUR bears were interrupted at Intraday support (1.2800-1.2830), failing to have daily/weekly closure below 1.2800. This enhanced the bullish retracement towards 1.2950 which expressed significant bearish rejection giving further confirmation for the double top pattern.

Breakdown of support zone around 1.2950 revived a "Double-Top" pattern on the daily chart that still has final target at 1.2680. 

A bullish Head and Shoulders pattern was mentioned on the 4H chart Yesterday which achieved its target around 1.2995 so quickly. However, it is important to note that price Levels 1.2950 (broken support)  providesd Intraday resistance for the EUR/USD pair.

The EUR/USD pair is still bearish which needs 1.2790 breakdown to resume the bearish movement towards 1.2750-1.2730 initially then 1.2650.

Failure of the EUR/USD to breakdown 1.2790 invalidates the bearish scenario in the short term.

Supply zone located around 1.5550-1.5600 (the upper limit of the depicted bullish channel and 50% Fibonacci level) provided considerable resistance for the cable last week. It pushed the pair down to 1.5075.

Previous consolidation range above 1.5200 was broken down, breaking the lower limit of the ascending channel as well then we had daily closure below 1.5190 on Friday.

Based on this bearish range breakout mentioned above, the cable hit its projection target around 1.5060 then 1.5035 (4th of April's low) where some recovery is seen today.

Resistance levels: 1.5200, 1.5370, 1.5580, 1.5650, and 1.5850. 

Support levels:   1.5060,1.5030, and 1.4975.      

On Monday, there was a bullish trial to step again above 1.5200. However, the movement was stopped at 1.5275 (within the depicted short term bearish channel). 

Breakdown of the recent low at 1.5310 then 1.5200 resumed the ongoing bearish momentum reaching down to 1.5010.

Although the pair stepped below the lower limit of the 4H channel at 1.5075, it came back again inside the channel which may bring back bullish strength to the pair towards 1.5120 then 1.5190.

Failure of the pair to remain above 1.5070 brings another bearish swing to the market towards 1.4830 low.

Fundamentally, British economy managed to avoid recession during the first quarter according to initial and second estimates released by the Office for National Statistics.

GBP/USD: 

Resistance: 1.5230 (sell below this level). 

Trading recommendations: (intraday)

Overview:
USD/JPY is consolidating after hitting four-and-a-half year high of 103.74 on Wednesday. The rate is underpinned by positive USD sentiment after Federal Reserve Chairman Bernanke said the Fed could begin tapering its bond-buying program in the "next few meetings" if the U.S. economy improved, and minutes from the April 30-May 1 FOMC meeting showing a "number" of officials were ready to reduce purchases as soon as June, although no consensus was reached. USD/JPY is also supported by higher U.S. Treasury yields; demand from Japan importers and investment trusts; Bank of Japan's aggressive easing measures to help reach its 2% inflation target--BOJ Wednesday left its monetary policy unchanged, keeping intact an unprecedented asset-purchase program. But USD/JPY upside is limited by unwinding of JPY-funded carry trades amid increased risk aversion as U.S. stocks retreated sharply from fresh record highs (S&P closed down 0.83% at 1655.35 overnight after peaking at 1687.18) on hawkish FOMC minutes; Japan exporter sales. Daily chart is still positive-biased as MACD is bullish, stochastics is staying elevated at overbought, five- and 15-day moving averages are advancing. 

Trading recommendations:  
The pair is trading above its pivot point. It is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, trading in higher range is most favorable and buy position is recommended above its pivot with the first target at 102.3 and the second target at 102.5. You should keep in view short position below the pivot keep of the first target at 100.8, breach of this target will move the pair downward further and expect the second target at 100.54. The pivot point stands at 102. 

Resistance Levels:
R1 - 102.3
R2 - 102.5
R3 - 103

Support Levels:
S1 - 100.8
S2 - 100.54 (May 10 low)
S3 - 99.95 (previous cap set April 11).  

USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading upwards, just like we expected, impulsive wave 5 (coloured green) of the bigger wave (A) (coloured blue) has finished developing. Yesterday, during the Asian session we could observe ascending movement from 1.0235 towards the 1.0321 level. Therefore, during the European and New York sessions this currency has continued trading in a bullish mood and the price has reached a new daily high at 1.0387 level. At the moment the USD/CAD pair is at the start of the corrective wave (B) and we expect to see the price lower for the next few days. In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0200 (50% of wave A). To reduce the risk, we can use today's high point at 1.0392 level as stop loss.
Support and Resistance
(S3) 1.0145 (S2) 1.0197 (S1) 1.0282 (PP) 1.0334 (R1) 1.0419 (R2) 1.0471 (R3) 1.0556
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0320 with stop loss at 1.0392 and take profit at 1.0200 are recommended. 

EUR/USD Elliott Wave
Since our last analyses the EUR/USD pair has been trading downwards, impulsive wave 1 (coloured blue) of the bigger wave (5) (coloured green) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.2903 towards the 1.2997 level and we can consider this move as the end of the corrective wave (4) (coloured green). Therefore, during the early New York session this major pair did not manage to hold this levels and the price has dropped to the new daily low at 1.2834. At the moment the EUR/USD pair is trading around 1.2895  and we expect to see the price lower in the next few sessions. In accordance with our wave rules and taking into account that wave 5 should retrace minimum 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.2716 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.2997 level as stop loss.
Support and Resistance
(S3) 1.2631 (S2) 1.2732 (S1) 1.2795 (PP) 1.2896 (R1) 1.2959 (R2) 1.3060 (R3) 1.3123
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short  positions at level 1.2885 with stop loss at 1.2997 and take profit at 1.2716 are recommended. 

Today at 12:30 GMT+4 data on UK GDP in Q1 in the second estimate is published, it is forecast to be flat, 0.3%.

At 16:30 GMT+4 data on US Initial Jobless Claims is issued, forecast 347K vs. 360K. At 17:00 GMT+4 ISM Manufacturing in May is revealed, forecast 51.6 vs. 52.1 in April. At 18:00 GMT+4 data on US New Home Sales in April is issued, forecast 429K vs. 417K in March.

If data is not lower than the forecasts we expect technical consolidation of the price above the Fibonacci extension on the H4, higher 1.5053; then 1.5115 is the target, it is the nearest Fibonacci extension. If data is weak, the price may drop to the low of March 1, 1.4986.

Today at 11:00 GMT+4 Services and Manufacturing PMI in France and Germany in May are published. It is expected to grow in France from 44.4 to 44.8 (Manufacturing PMI) and Service PMI is estimated to rise from 44.3 to 44.7. In Germany Services PMI is expected to be 50.2 vs. 49.6. At 12:00 GMT+4 data on the eurozone is published, 47.4 vs. 47.0 (Service PMI) and 47.1 vs. 46.7 (Manufacturing PMI). Strong data on Italian Retail sales are expected (0.3% vs. -0.2%).

At 14:05 GMT+4 James Bullard, President and CEO of the Federal Reserve Bank of St. Louise speaks. At 16:30 GMT+4 US Initial Jobless Claims will be revealed, forecast 347K vs. 360K. AT 17:00 GMT+4 Manufacturing ISM in May, forecast 51.6 vs. 52.1. At 18:00 GMT+4 data on US New Home Sales in April is issued, forecast 429K vs. 417K in March.

At 23:30 GMT+4 the ECB President Mario Draghi speaks.

Thus, today a day of correction is expected.

If the price breaks the resistance of trend line on the H4 1.2856, such targets as 1.2882, the resistance of Kruzenshtern line (blue sliding), 1.2905, the resistance of trend line, 1.2932, the highs of May 10 and 16, open.

If today's low 1.2824 is broken, testing of the support of trend line 1.2795 is possible, it coincides with the low of May 17.

H4 Chart: A similar situation presented in this chart, comparing it with the daily chart, the Aussie is forming a higher low pattern, preparing to break the bearish trend line that is near the 0.9650 level. If the pair breaks that trend line, it is expected to fall to support at the 0.9506 level, which is very likely and is supported by the MACD indicator, which is currently in negative territory and showing that there are still very strong bearish in this pair. However, if the AUDUSD pair breaks the resistance level at 0.9825, it is expected to rise to the level 0.9965. The Aussie remains well below the 200 SMA, supporting a bearish outlook on this chart for this pair.

H1 chart: In this chart, there are two possibilities to do a good intraday trading this pair. For one, the Aussie is forming a higher low pattern over the support at the level of 0.9672, if the pair breaks this support, it is expected to drop to the next support at the level of 0.9585. Moreover, if the pattern is not formed and the Aussie breaks the resistance level at 0.9718, it is expected to climb to the Point of Control (POC) to be formed in the resistance level at 0.9761. However, we must be careful when doing intraday trading with this pair for now, because the MACD indicator is showing oversold extremes, although as I said earlier, this is very normal because so hasty movement this pair had in yesterday's session.

Fundamental Outlook: For today's session, no data releases are expected in Australia, but in the U.S. at 12:30 GMT, the Unemployment Claims (Previous: 360K / Forecast: 347K) will be published and at 14:00 GMT the New Home Sales (Previous: 417K / Forecast: 429K) will be issued. If the current reading is higher than the forecast, we would expect bearish movements in the AUDUSD pair during the hour.



Trading recommendations for today: Based on the H1 chart, place SELL (short) orders only if the AUD/USD pair breaks with a bearish candlestick, the support level at 0.9672, take profit is at 0.9600, and stop loss is at 0.9718. Place BUY (long) orders only if the AUD/USD pair breaks with a bullish candlestick, the resistance level at 0.9718, take profit is at 0.9761, and stop loss is at 0.9672. 

H4 Chart: Similarly, the USDX is forming a lower high pattern and is looking to break the bullish trend line that is near the 84.60 level. If it breaks that trend line, it is expected to rise in the medium to long term to the level at 86.80 and for that reason, it would only look for buy orders on the USDX. In yesterday's session, the USDX found support at 83.49 level, demonstrating the strength of this support that has tried to break in days before without success. The MACD indicator is in positive territory and showing that there is still a lot of strength in time bullish trend in this market. In short, only buy orders, unless economic data are released today and tomorrow, are negative for the U.S. economy.

H1 chart: During yesterday's session, 2 Points Of Control (POC) were formed below the current price of the USDX, one at the level of 84.18 and the other at the level of 83.90. As we had said yesterday, the USDX found dynamic support moving average of 200 and made a strong bullish rebound almost 70 pips, leading to resistance in the 84.37 level. Now the USDX market is forming a lower high pattern below that resistance and if it is broken it is expected to rise to psychological resistance at 95.00. On the other hand, the MACD indicator is showing overbought levels in the USDX, which may be forecasting that the USDX will make a consolidation in a low range for the rest of the week, but we should not rule out strong movementsin the USDX market due to the sensitivity that this market has, before the publication of economic data in the United States. 

Fundamental Outlook: For today's session in the United States the Unemployment Claims (Previous: 360K / Forecast: 347K) and at 14:00 GMT will be published, the New Home Sales (Previous: 417K / Forecast: 429K) will be revealed. If the current reading is higher than the forecast, we would expect bullish movements in the USDX market during the hour, so, be cautious the opening during the New York session.



Trading recommendations for today: Based on the H1 chart, place BUY (long) orders only if the USDX market breaks with a bullish candlestick, the resistance level is at 84.37, take profit is at 84.85, and stop loss is at 83.95. 

Today's Support and Resistance levels:

R3: 1.6134

R2: 1.6085

R1: 1.6024

Current spot: 1.6002

S1: 1.5937

S2: 1.5888

S3: 1.5826

Technical overview:

As we have entered the powerful wave iii of 3 we should see acceleration towards the upside. We have seen a break above the base-channel resistance line as it was expected as wave three unfolds. The first target we are looking for is at 1.6481, but in the longer term we are looking for much higher levels as major wave C unfolds.
In the short term minor resistance at 1.6024 could protect the upside for a minor and likely sub-normal correction towards 1.5979 and may be 1.5939 before the next swing higher towards 1.6085 and 1.6134 on the way towards 1.6481.

Trading recommendation:

We are long EUR from 1.5790 and will move our stop higher to 1.5820. If you are not long EUR already, then buy near 1.5979 with the same stop.

Overview

From the today's H4 chart, the metal is still trading between the Support level 22.00 and below the Resistance level 23.00 after its failure to break the Resistance level yesterday and bounced from it to take a slightly downward move and currently is re-testing the Support level 22.00 again. Presently we suggest waiting for closing above the Resistance level 23.00 in case of bouncing from the Support level 22.00 to give us a new opportunity for more buy signals with the first target few pips below the Resistance level 23.90, then after breaking this Resistance level silver would open the way towards the Resistance level 24.40, which means more bullish signals.

Resistance and support levels: R3 (24.40) R2 (23.90) R1 (23.00) S1 (22.00) S2 (21.00)

TODAY'S  TECHNICAL  LEVELS:

Resistance 3: 103.94.
Resistance 2: 103.74.
Resistance 1: 103.54.
Support 1: 103.29.
Support 2: 103.08.
Support 3: 102.88. 

DESCRIPTION:

Please pay attention to the levels of support 3 (102.88) and resistance 3 (103.94). Normally, when a level is touched, USD/JPY will rebound from the previous minimum by 10 to 20 pips, but if the levels are broken through by over 50 pips, then it will be a sign that these currencies have found trends today. 

Best regards,

Arief Makmur

Official Analyst of InstaForex Companies Group

InstaForex Companies Group

http://instaforex.com

Email: Arief.jakarta@indo.instaforex.com

Yahoo Messenger and Skype: Arief.ifx_jakarta

blog.mt5.com/arief

http://www.mt5.com/forex_analysis_award/profile/index/arief

Disclaimer:

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

TODAY'S  TECHNICAL  LEVELS:

Breakout BUY Level: 1.2903.
Strong Resistance: 1.2896.
Original Resistance: 1.2883.
Inner Sell Area: 1.2870.
Target Inner Area: 1.2840.
Inner Buy Area: 1.2810.
Original Support: 1.2797.
Strong Support: 1.2784.
Breakout SELL Level: 1.2777. 

DESCRIPTION:

Today EUR/USD has support and resistance at 1.2797 and 1.2883. The rate is accompanied by strong support at 1.2784 and by 1.2896 as strong resistance.

If EUR/USD breaks out and closes below 1.2777 level today, then it will indicate considerable bearish strength. Meanwhile, if EUR/USD manages to break out and closes above 1.2903 level, then it will denote high bullish strength. Alternatively, for advance traders, you can trade in a way to open a BUY position at the level of 1.2810 and at 1.2870, a SELL position. In this case both targets should be located at the level of 1.2840.

Best regards,

Arief Makmur

Official Analyst of InstaForex Companies Group

InstaForex Companies Group

http://instaforex.com

Email: Arief.jakarta@indo.instaforex.com

Yahoo Messenger and Skype: Arief.ifx_jakarta

blog.mt5.com/arief

http://www.mt5.com/forex_analysis_award/profile/index/arief

Disclaimer:

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Overview:

As it was expected yesterday, the price would continue its bearish move after breaking the support area that consists of the intersection point of the downward trend line and the support level 154.75. Today and as shown in the H4 chart, the pair has already broken this support area and currently is trading below it.Therefore we suggest more bearish signals now with the first target few pips above the support level 153.80, then we should stop till testing this support level. In case of closing below this level, this gives us a new opportunity for more bearish move till reaching the support level 152.50 and closing below it.

Resistance and support levels: R2 (157.50), R1 (156.75), S1 (154.75), S2 (153.80), S3 (152.50).

WEEKLY 

8 HOURLY

Today's support and resistance levels:

R3: 133.10

R2: 132.88

R1: 132.66

Current spot: 132.24

S1: 131.95

S2: 131.55

S3: 130.95

Technical overview:

With the test of 133.81 yesterday, we have seen the end of wave 5 and wave I of the entire rally since the July 2 2012 low at 94.10. We are now entering a major correction as wave II, it should ideally correct to the bottom of wave 4 which comes in at 118.73, which (if you take a look at the chart above) will be an almost a perfect 38.2% correction of the rally from 94.10 to 133.81. The rally from 94.10 to 133.81 has taken 44 weeks (Fibonacci number) and has corrected slightly more than 50% of the decline from 168.88 down to 94.10.

In the short term, we have already seen a 50% retracement of the decline from 133.81-131.94 with the test of 132.87 and should expect the next decline to at least 131.08 any time now. That said we must accept the possibility, that support at 131.94 protects the downside for a slightly higher correction to 133.10, but that is not our preferred count at this point.

Trading recommendation:

We missed our take profit + reversal target at 134.20 with only 39 small pips, but we knew it was a close call. Our breakeven stop was hit at 132.30 and we will now be looking for EUR selling opportunities. We will sell EUR at 132.40 or upon a break below 131.94. We will place our stop at 133.94.

RECOMMENDATIONS:

Buy stop (pending order) at 133.01.

Stop loss at 132.91.

Take profit at 133.15.

Alternative:

Sell stop (pending order) at 132.24.

Stop loss at 132.34.

Take profit at 132.10.

Best regards,

Arief Makmur

Official Analyst of InstaForex Group

InstaForex Group

http://instaforex.com

Email: Arief.jakarta@indo.instaforex.com

Yahoo Messenger & Skype: Arief.ifx_jakarta

blog.mt5.com/arief

http://www.mt5.com/forex_analysis_award/profile/index/arief

Disclaimer:

Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

If you need personal consultation, contact me via e-mail: gerardo.porras@analytics.instaforex.com

This morning the Australian dollar receded, after it had won positions on Monday and part of Tuesday. It fell back these times, because the Consumer Confidence Index, which showed a significant drop. This data was the trigger for a new decline of the Aussie. Now, looking at the lines of fractals, this pair is in a new fractal formed at 0.9753. Given that this pair has consolidated at this level, we recommend buying if the price of the Aussie closes 4-hour charts above this level with targets at 0.9919. On the other hand, if the pair closes below 0.9725, the fall may continue until the next fractal 0.9590. In addition Momentum Indicator is showing signs of a new upward sequence, so we must wait for the breakdown of the MACD line to the bullish signal is verified.

If you need personal consultation, Skype: gerardofx or contact me via e-mail: gerardo.porras@analytics.instaforex.com

Overview:
USD/JPY is consolidating as markets are waiting for Federal Reserve Chairman Bernanke's testimony before Congress, scheduled at 14:00 GMT, and FOMC meeting minutes, due at 18:00 GMT. BOJ is expected to stand pat on monetary policy, but traders are focusing on how the central bank will respond to the volatile Japanese government bond market--some expect measures such as an increase in JGB buying to force yields lower. USD/JPY is undermined by weaker USD sentiment after two regional Fed presidents, James Bullard and William Dudley, indicated that they are committed to maintaining the monetary-policy status quo in the near term, assuaging concerns that the Fed could consider tapering its bond purchases in coming months. USD/JPY is also weighed by lower U.S. Treasury yields; Japan exporter sales. But JPY sentiment hurt after Japan Economy Minister Akira Amari said Tuesday he hoped foreign-exchange levels would settle at a level corresponding with the relative strength of the Japanese economy, modifying his comments made Sunday that had caused the yen to strengthen to 102.00 from 103.18. USD/JPY losses also tempered by demand from Japan importers and investment trusts; Bank of Japan's aggressive easing measures to help reach its 2% inflation target. Daily chart is mixed as MACD is bullish, but stochastics is bearish at overbought; inside-day-range pattern was completed on Tuesday.

Trading recommendations: 
The pair is trading above its pivot point. It is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, trading in higher range is most favorable and buy position is recommended above its pivot with the first target at 103.6 and the second target at 104. You should keep in view short position below the pivot keep of the first target at 102.83, breach of this target will move the pair downward further and expect the second target at 101.85. The pivot point stands at 102.6.

Support levels:
S1 - 102.08-102.00 band (Tuesday's low-Monday's low)
S2 - 101.83 (Thursday's low)
S3 - 101.25 (May 14 low) 

Resistance levels:
R1 - 103.6
R2 - 104
R3 - 104.25