USD/JPY is expected to trade with a bullish bias. The pair managed to break above its intraday key resistance at 112.90, which should open the path towards 113.65. The 50-period moving average is still on the upside, and is also acting as support. Furthermore, the relative strength index is bullish above its neutrality level at 50. To sum up, as long as 112.90 is not broken, the pair is likely to advance to 113.95.
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 113.65 and the second one at 113.95. In the alternative scenario, short positions are recommended with the first target at 112.50 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 112.00. The pivot point is at 112.90.
Resistance levels: 113.65, 113.95, 114.45
Support levels: 112.50, 112.00, 111.65
