USD/JPY is expected to trade in higher range as the bias remains bullish. The pair is trading above its 50-period moving average and is holding on the upside. Besides, the outlook is positive as the 20-period moving average crossed above the 50-period one. Meanwhile, the relative strength index is above 50 and is positively oriented.
On Thursday, U.S. indices closed higher elevated by shares in the banks, diversified financials, and materials sectors. The Dow Jones Industrial Average rose 65 points (+0.3%) to 19,615, the S&P 500 added 5 points (+0.2%) to 2,246, and the Nasdaq Composite was up 21 points (+0.4%) to 5,417.
On the economic data front, initial jobless claims decreased to 258k in week ended Dec. 3 (estimated 255k) from 268k in the previous week. Continuing claims diminished to 2.01M in week ended Nov. 26 (forecasted 2.05M) compared with 2.08M in the prior week.
To sum up, as long as 114.10 is not broken down, further bounce is preferred with 115.00 and 115.30 as targets.
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 115 and the second one at 115.30. In the alternative scenario, short positions are recommended with the first target at 113.80 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 113.65. The pivot point lies at 114.10.
Resistance levels: 115.00, 115.30, 115.80
Support levels: 113.80, 113.65, 113.20
The material has been provided by InstaForex Company - www.instaforex.com