USD/JPY is expected to trade with bullish bias above 114.30. the pair broke below the 20-period and 50-period moving averages, it is trading below from the key resistance at 114.30, which should limit the upside potential. The relative strength index lacks upward momentum. Even though the continuation of consolidation cannot be ruled out, its extent should be limited. Therefore, as long as 114.30 holds as resistance, look for a further downsize to 113.20 and even 112.80 in extension.
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 113.20. A break below this target will move the pair further downwards to 112.80. The pivot point stands at 114.30. If 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 114.70 and the second one at 115.
Resistance levels: 0.7220, 0.7240, and 0.7280
Support levels: 0.7140, 0.7120, and 0.7085
The material has been provided by InstaForex Company - www.instaforex.com