Our first target which we predicted in the previous analysis has been hit. USD/JPY is expected to trade with a bullish outlook. The pair is supported by a rising trend line since April 10, which confirmed a bullish outlook. The 50-period moving average is turning up and is acting as a support. The relative strength index is above its neutrality level at 50 and lacks downward momentum. To conclude, as long as 106.55 is not broken, look for a further advance with targets at 107.45 and 107.75 in extension.
Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot point indicates a short position. The red lines show the support levels, and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: BUY, stop loss at 106.55, take profit at 107.45
Resistance levels: 107.45, 107.75, and 107.30
Support levels: 106.25, 106.00, and 105.45.
