Our upside target of USD/JPY has been hit. USD/JPT is expected to trade with a bullish bias above 113.10. Although the pair posted a pullback, a support base at 112.80 has formed and has allowed for a temporary stabilization. Even though a continuation of consolidation cannot be ruled out, its extent should be limited.
Therefore, as long as 113.10 is not broken, look for a rebound to 113.70. A break above this level would trigger another upside to 114.00 in extension.
Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 113.10 with a target at 112.80.
Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position while the price below the pivot point is a sign for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.
Strategy : BUY, Stop Loss: 113.10, Take Profit: 113.70
Resistance levels: 113.70, 114.00, and 114.05
Support levels: 112.80,112.40, and 112
The material has been provided by InstaForex Company - www.instaforex.com