USD/JPY is expected to trade with bullish bias. The pair is bullish above its rising trend line since September 26, and is heading upward with strong bullish momentum. Meanwhile, the 20-period moving average crossed above the 50-period one (a bullish signal). Besides, the relative strength index is positive, and calls for further upsides. On Wednesday, U.S. stock indexes posted gains as energy shares were boosted by a late surge in oil prices, which was triggered by reports that members of the Organization of the Petroleum Exporting Countries agreed to cut crude production starting in November. The Dow Jones Industrial Average increased 110 points (+0.6%) to 18339, the S&P 500 rose 11 points (+0.5%) to 2171, and the Nasdaq Composite was up 12 points (+0.2%) to 5318.
Hence, as long as 101.10 and the rising trend line hold on the downside, we expect further advance to 101.60 and even to 102.05 as possible.
Trading Recommendation: 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. Therefore, long positions are recommended with the first target at 101.60 and the second one at 102.05. In the alternative scenario, short positions are recommended with the first target at 100.40 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 100.05. The pivot point lies at 101.10.
Resistance levels: 101.60, 102.05, 102.35
Support levels: 100.40, 100.05, 99.60
The material has been provided by InstaForex Company - www.instaforex.com