USD/JPY is expected to trade with a bullish bias above 101.80. The pair is posting some consolidations after the downside breakout of its 20-period moving average. Nevertheless, a support base has been formed at 101.80 and the downside attempts should be limited by this level. Last but not least, even though a continuation of the consolidations cannot be ruled out, its extent should be limited. To sum up, as long as 101.80 is not broken, look for a further advance to 103.05. A break above this level would open the way to further upside toward the next resistance at 103.45.
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 103.05 and the second one at 103.45. In the alternative scenario, short positions are recommended with the first target at 101.45 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 101.45. The pivot point is at 101.80.
Resistance levels: 103.05, 103.45, 103.90
Support levels: 101.45, 101.15, 100.80
The material has been provided by InstaForex Company – www.instaforex.com