USD/JPY is expected to trade with bullish bias above 114.15. Although the pair retreated from 114.75 (Mar. 3 and Mar. 8 top), it is still trading above its rising 50-period moving average which plays a support role and maintains the upside bias. The relative strength index stands firmly above its neutrality level at 50.
To sum up, as long as 114.15 holds on the downside, look for a rebound to 114.75. A break above this level would call for a new rise to 115.00.
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 114.75 and the second one at 115.00. In the alternative scenario, short positions are recommended with the first target at 113.90, 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 113.00. The pivot point is at 114.15.
Resistance levels: 114.75, 115.00, and 115.35
Support levels: 113.90, 113.60, and 113.30
The material has been provided by InstaForex Company - www.instaforex.com