USD/JPY is expected to extend its upside movement. The pair broke above its former key resistance at 112.15, which is now playing a support role. The upward momentum is further reinforced by the ascending 20-period and 50-period moving averages. The relative strength index is still above its neutrality level at 50, and lacks downward momentum. Thus as long as 112.15 remains support, look for a further upside toward 113.75 and even to 114.30 as possible.
Trading 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 113.75 and the second one at 114.30. In the alternative scenario, short positions are recommended with the first target at 110.75 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 110.75. The pivot point lies at 112.15.
Resistance levels: 113.75, 114.30, 115.00
Support levels: 111.30, 110.75, 110.20
The material has been provided by InstaForex Company – www.instaforex.com