USD/JPY is expected to trade with bullish outlook. Despite the recent pullback, the pair is still trading above the key support at 113.60, which should limit the downside potential. The relative strength index advocates for a further upside.
Hence, as long as 113.60 is not broken, look for a new rebound with targets at 114.70 and 115.00 in extension.
Alternatively, if the price moves in the opposite direction, a short position is recommended above 113.60 with a target at 113.3.
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: 113.60, Take Profit: 114.70
Resistance levels: 114.70, 115.00 and 115.50 Support Levels: 113.30, 112.95, 112.50
The material has been provided by InstaForex Company - www.instaforex.com