Technical analysis of USD/JPY for October 03, 2017

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USD/JPY is expected to continue its upside movement. Although the pair posted a pullback, a support base at 112.75 has formed and has allowed for a temporary stabilization. The relative strength index is supported by a rising trend line since October 2.

To conclude, as long as 112.75 is not broken, look for the continuation of rebound with targets at 113.50 and 113.75 in extension.

Alternatively, if the price moves in the opposite direction, a short position is recommended below 112.75 with a target at 112.50.

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: 112.40, Take Profit: 113.25

Resistance levels: 113.50, 113.75 and 114.00 Support Levels: 112.50, 112.20, 111.75

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