USD/JPY is expected to trade with a bullish bias above 116.60. The pair remains on the upside within its bullish channel. At the same time, the 50-period moving average is heading upward, and acts as a support role. Even though a continuation of the consolidation cannot be ruled out at the current stage, its extent should be limited. To sum up, as long as 116.60 holds on the downside, look for further advance to 117.25 and in extension.
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 117.25 and the second one, at 117.50. In the alternative scenario, short positions are recommended with the first target at 116.40 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 116.10. The pivot point is at 116.60.
Resistance levels: 0.7240, 0.7265, 0.73
Support levels: 0.7155, 0.7115, 0.7055
