USD/JPY is expected to trade with a bullish bias above 108.45. The pair is trading above its rising 50-period moving average, which plays a support role and maintains the upside bias. The relative strength index is above its neutrality level at 50. A support base at 108.45 has formed and has allowed for a temporary stabilization.
To conclude, as long as 108.65 is support, expect a further upside to 109.20. A break above this level would trigger another rise to 109.50.
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 109.20 and the second one at 109.50. In the alternative scenario, short positions are recommended with the first target at 108.20 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 107.95. The pivot point is at 108.45.
Resistance levels: 109.20, 109.50, and 110.00
Support levels: 108.20, 107.95, and 107.50
The material has been provided by InstaForex Company - www.instaforex.com