USD/JPY is expected to extend its upside movement.The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. Additionally, 114.55 is playing a key support role, which should limit the downside potential.
Hence, as long as 114.55 holds as support, look for a further rise towards 115.40 and even 115.80 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 115.40 and the second one at 115.80. In the alternative scenario, short positions are recommended with the first target at 114.00 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 113.45. The pivot point is at 114.55.
Resistance levels: 115.40, 115.80, 116.25 , Support levels: 114.00, 113.45, 113.00
