USD/JPY is expected to trade with a bullish bias. The pair recorded a succession of higher tops and higher bottoms since Jan 20, which confirms the bullish scenario. The upward momentum is further reinforced by its rising 20-period and 50-period moving averages, which are playing support roles and maintain the upside bias. Moreover, the relative strength index is staying firmly above its neutrality level at 50 and lacks downward momentum.
Hence, as long as 112.45 is support, look for a further rise towards 113.75 and even 114.10 in extension.
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 113.75 and the second one at 114.10. In the alternative scenario, short positions are recommended with the first target at 112.00 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 111.50. The pivot point is at 112.45.
Resistance levels: 113.75, 114.10, 114.40 ,
Support levels: 112.00, 111.50, 111
The material has been provided by InstaForex Company – www.instaforex.com