Technical analysis of USD/JPY for May 29, 2015

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Fundamental overview: USD/JPY is expected to consolidate in a lower range after hitting the 12.5-year high of 124.46 on Thursday. USD/JPY is undermined by the softer USD sentiment (ICE spot dollar index last 96.87 versus 97.29 early Thursday) as more-than-expected 282,000 US jobless claims in the week ended May 23 (versus forecast 272,000) offset stronger-than-expected 3.4% increase in the US April pending home sales (versus forecast +1.0%). USD/JPY is also weighed by the lower shorter-dated US Treasury yields (2-year at 0.628% versus 0.652% late Wednesday), diminished investor risk appetite (VIX fear gauge rose 0.3% to 13.31, S&P 500 closed 0.13% lower at 2,120.79 overnight) following a steep drop in the Chinese stocks Thursday (Shanghai Composite Index plunged 6.5%), Japan's exports and profit-taking on long-USD positions ahead of the weekend. But USD sentiment is soothed by the comments from Fed's Williams that the US central bank is likely to raise interest rates this year and start the gradual process of the monetary policy normalization. USD/JPY losses are also tempered by the demand from the Japanese importers and the Bank of Japan's ultra-loose monetary policy.

Technical comment:

The daily chart is still positive-biased as the MACD is bullish, stochastics stays elevated at overbought levels; 5 and 15-day moving averages are advancing.

Trading recommendations:

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. As long as the price holds above its pivot point, long positions are recommended with the first target at 124.30 and the second target at 124.80. In the alternative scenario, short positions are recommended with the first target at 122.85 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 122.45. The pivot point is at 123.40.

Resistance levels: 124.30 124.80 125.50

Support levels: 122.85 122.45 121.70

The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/CHF for May 29, 2015

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Fundamental overview:

USD/CHF is expected to trade in a lower range. It is undermined by the softer USD sentiment (ICE spot dollar index last 96.87 versus 97.29 early Thursday) as more-than-expected 282,000 US jobless claims in the week ended May 23 (versus forecast 272,000) offset stronger-than-expected 3.4% increase in the US April pending home sales (versus forecast +1.0%). The pair is also supported by the franc demand on cross trades versus major currencies. But USD/CHF losses are tempered by the negative Swiss interest rates, the threat of the Swiss National Bank to carry out CHF-selling intervention and positions adjustment ahead of the weekend.

Technical comment:

The daily chart is mixed as the MACD is bullish, but stochastics is bearish at overbought levels.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9335. A break of that target will move the pair further downwards to 0.9280. The pivot point stands at 0.9480. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.9515 and the second target at 0.9550.

Resistance levels: 0.9515 0.9550 0.9610

Support levels: 0.9335 0.9280 0.9245

The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of NZD/USD for May 29, 2015

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Fundamental overview:

NZD/USD is expected to consolidate with bearish bias after hitting the four-year low of 0.7127 on Thursday. It is undermined by the contagion from the weak Aussie after disappointing Australian Q1 capital expenditure data, diminished investor risk appetite, and the 1.7% drop in the New Zealand April building consents. The pair is alsoo bosted by soft dairy prices, the kiwi sales on the buoyant EUR/NZD cross, and speculation that the RBNZ would cut interest rate in the coming months. But NZD/USD losses are tempered by the softer USD sentiment, NZD-USD interest differential, and positions adjustment ahead of the weekend.

Technical comment:

The daily chart is negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, 5 and 15-day moving averages are falling.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7090. A break of that target will move the pair further downwards to 0.7030. The pivot point stands at 0.7210. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7270 and the second target at 0.730.

Resistance levels: 0.7270 0.73 0.7350

Support levels: 0.7090 0.7030 0.7

The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of GBP/JPY for May 29, 2015

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Fundamental outlook: GBP/JPY is expected to trade in a higher range. It is underpinned by the improved euro sentiment and demand from Japan's importers. But GBP/JPY gains are tempered by the Japanese exports and positions adjustment ahead of the weekend.

Technical comment: The daily chart is mixed as the MACD is bearish, but stochastics is rising from oversold levels.

Trading recommendations:

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. As long as the price holds above its pivot point, long positions are recommended with the first target at 190 and the second target at 190.60. In the alternative scenario, short positions are recommended with the first target at 188.60 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 187.80. The pivot point is at 190.05.

Resistance levels: 190.60 191.20 191.75

Support levels: 188.60 187.80 187

The material has been provided by InstaForex Company - www.instaforex.com