Call update: USD/JPY targets achieved, book partial profits, lower trailing stops, hold for 119 levels

 

• Our USD/JPY call (http://www.econotimes.com/FxWirePro-USD-JPY-upside-capped-by-200-DMA-at-12147-good-to-sell-rallies-153594) has achieved targets.
   
• Dovish comments from the BOJ Governor Kuroda saw a minor recovery in USD/JPY, but persisting risk-aversion is likely to keep the safe-haven bids for the yen intact.
   
• US ADP jobs report will remain in focus; besides the oil price action will continue to provide further direction to the pair.
   
• Technicals indicated further downside, RSI and Stochs point south, but MACD see scope for upside.
   
• Next focus below 119.20 will be 119.00, we could see buying interest here, the point where demand originated post-BOJ negative rate decision.
   

Recommendation: Book partial profits, lower trailing stops to 120.70, TP: 119.20/119