USD/JPY is expected to trade with a bullish bias. The pair broke above its 50-period moving average and is holding on the upside. Moreover, the 20-period moving average is turning up and is likely to cross above the 50-period one in coming sessions. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. Additionally, 113.30 is playing a key support role, which should limit the downside potential.
As long as this level is not broken, look for a technical rebound towards 114.25 and even 114.50 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 114.25 and the second one at 114.50. In the alternative scenario, short positions are recommended with the first target at 113.00 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 112.55. The pivot point is at 113.30.
Resistance levels: 114.25, 114.50, 115.00 Support levels: 113.00, 112.55, 112.00
