Technical analysis of USD/JPY for October 10, 2017

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USD/JPY is expected to trade with a bullish outlook. Despite the recent pullback, the pair is still supported by a rising 50-period moving average. The relative strength index is mixed with bullish bias. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Therefore, above 112.30, look for a further advance with targets at 112.90 and 113.10 in extension.

Alternatively, if the price moves in the opposite direction, a short position is recommended below 112.30 with a target at 112.10.

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: 112.30, Take Profit: 112.90

Resistance levels: 112.90, 113.10 and 113.50 Support Levels: 112.10, 111.80, 111.50

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