USD/JPY is expected to trade with a bullish bias as the movement is supported by a rising trend line. The pair remains on the upside, backed by its intraday ascending trend line. The process of higher highs and lows remains intact, which should confirm a positive outlook. Besides, the rising 50-period moving average still plays a support role. Hence, as long as 117.15 is not broken, look for a new bounce to 117.60 and 117.80 in extension.
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 117.60 and the second one, at 117.80. In the alternative scenario, short positions are recommended with the first target at 116.90 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 116.70. The pivot point is at 117.15.
Resistance levels: 117.60, 117.80, 118.05
Support levels: 116.90, 116.70, 116.15
The material has been provided by InstaForex Company - www.instaforex.com