USD/JPY is expected to trade with bullish bias. The pair is supported by the rising trend line, which confirms a positive view. The relative strength index stands firmly above its neutrality level at 50. In addition, 111.95 is playing a key support role, which should limit the downside potential.
As long as this key level is not broken, look for further advance to 112.80 and even to 113.25.
Recommendation:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 112.80 and the second one is at 113.25. In the alternative scenario, short positions are recommended with the first target at 111.65 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 111.30. The pivot point is at 111.95.
Resistance levels: 112.80, 113.25, and 113.60. Support levels: 111.65, 111.30, and 111.00.
The material has been provided by InstaForex Company - www.instaforex.com