USD/JPY is expected to trade with bullish bias above 117.35. The pair is trading above its ascending 50-period moving average. Technically, the relative strength index is above its neutrality level at 50. Besides, a support base at 117.35 has formed and has allowed for a temporary stabilisation which should limit the downside potential. To sum up, as long as 117.35 is support, expect a new rise toward 117.90, if it breaks above, look for a further advance toward 118.05.
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 117.90 and the second one at 118.05. In the alternative scenario, short positions are recommended with the first target at 117.15 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 117.00. The pivot point lies at 117.35.
Resistance levels: 117.90, 118.05, 118.35
Support levels: 117.15, 117.00, 116.65
The material has been provided by InstaForex Company - www.instaforex.com