Technical analysis of USD/JPY for August 03, 2017

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USD/JPY is expected to trade with bullish outlook. The pair posted a rebound from 110.25 (the low of August 2) and broke above its 20-period and 50-period moving averages. The relative strength index is bullish and calls for a further upside.

Hence, as long as 109.90 is not broken, look for a further rise to 110.95 and even to 111.30 in extension.

Alternatively, if the price moves in the opposite direction, a short position is recommended below 109.90 with a target at 109.40.

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: 109.90, Take Profit: 110.95

Resistance levels: 110.95, 111.30, and 111.75 Support Levels: 109.70, 109.45, 109

The material has been provided by InstaForex Company - www.instaforex.com