USD/JPY is expected to trade with bullish bias. The pair posted a strong rebound last night and broke above its 20-period and 50-period moving averages. In addition, the 20-period moving average is turning up and is about to break above the 50-period one. The relative strength index is heading upward without showing any reversal signal.
Hence, as long as 112.70 is support, a further rise to 113.75 and even to 114.05 is likely to occur.
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 113.75 and the second one at 114.05. In the alternative scenario, short positions are recommended with the first target at 112.40, if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 111.90. The pivot point is at 112.70.
Resistance levels: 113.75, 114.05, and 114.65
Support levels: 112.40, 111.90, and 111.60
The material has been provided by InstaForex Company - www.instaforex.com