Technical analysis of USD/JPY for December 22, 2017

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Our first upside target which we predicted in our previous analysis has been hit. USD/JPY is expected to continue its upside movement. the pair is off the high of 113.63 seen yesterday (December 21) and capped by the 20-period moving average. However, it has avoided breaching the key support at 113.20. Though the relative strength index is yet to recover the neutrality level of 50, it has broken above a declining trend line, showing a lack of tendency to decline further. As long as the key support at 112.80 remains intact, the pair still stands chances of revisiting 113.65 on the upside.

Alternatively, if the price moves in the opposite direction, a short position is recommended below 112.80 with a target of 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: 112.80, Take Profit: 113.65

Resistance levels: 113.65, 113.85 and 114.10 Support Levels: 112.50, 112.30, 112.00

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