USD/JPY Intraday: Bullish bias above 110.40. The pair remains above its key support level at 110.4, which allows for a temporary stabilization. The relative strength index is mixed to bullish around its neutrality level at 50. Even though a consolidation cannot be ruled out, its extent should be limited.
The U.S. dollar paused as investors took profits on the currency's 10-day rally, its longest winning streak in over four years. The ICE U.S. Dollar Index eased 0.2% to 101.05.
Hence, as long as the key horizontal level at 110.30 is not broken, likely advance to 111.35 and 112.0 in extension.
Trading Recommendation: 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 111.35 and the second one at 112.00. In the alternative scenario, short positions are recommended with the first target at 109.80 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 109.20. The pivot point lies at 110.30.
Resistance levels: 111.35, 112.00, 112.45
Support levels: 109.80, 109.20, 108.65
The material has been provided by InstaForex Company - www.instaforex.com