USD/JPY is expected to trade with bullish bias above 112.70. The pair remains on the upside, capped by its rising 50-period moving average. The nearest key support at 112.70 also acts a resistance. In addition, the relative strength index lacks strong downward momentum.
In these perspectives, as long as 112.70 holds on the downside, look for further upside to 113.50 and 113.80 in extension.
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 113.50 and the second one at 113.80. In the alternative scenario, short positions are recommended with the first target at 112.15, 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 111.60. The pivot point is at 112.70.
Resistance levels: 113.50, 113.80, and 114.30
Support levels: 112.15, 111.60, and 111.25
The material has been provided by InstaForex Company - www.instaforex.com