USD/JPY is expected to trade with bullish bias. The technical picture of the pair is bullish above a bullish trendline which confirms a positive view. The upward momentum is further reinforced by its descending 20-period and 50-period moving averages, which play support roles and maintain the bullish bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum.
As long as the level of 111.55 works as resistance, look for a further upside towards 112.80 and even 113.25 in extension.
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 112.80 and the second one is at 113.25. In the alternative scenario, short positions are recommended with the first target at 111.15 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 110.80. The pivot point is at 111.55.
Resistance levels: 112.80, 113.25, and 113.60. Support levels: 111.15, 110.85, and 110.30.
The material has been provided by InstaForex Company - www.instaforex.com