All our targets which predicted in yesterday's analysis have been hit. USD/JPY is expected to continue an upward movement. The pair rebounded from the rising 20-period moving average after a pullback from 109.10. The relative strength index has just landed on its neutrality level at 50 and is turning up. The downside potential should be limited by the key support at 108.95.
Hence, as long as this key level is not broken, look for a further rise with targets at 109.75 and 110 in extension.
Alternatively, if the price moves in the opposite direction, a Short position is recommended to be below 109.10 with a target of 108.85.
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 signal 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 at 109.10, take profit at 109.75.
Resistance levels: 109.75, 110.10, and 110.50
Support levels: 108.85, 108.65, and 108.30.
The material has been provided by InstaForex Company - www.instaforex.com