USD/JPY is expected to trade with bullish bias above 112.50. The pair is posting a strong rebound and stays above its 50-period moving average. The technical configuration is still positive as the 20-period moving average remains above the 50-period one, and the relative strength index is above its neutrality area at 50 and lacks downward momentum.
As long as 112.50 holds as the key support, look for a new upleg to 113.60 and 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 113.60 and the second one at 113.95. In the alternative scenario, short positions are recommended with the first target at 112.15 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 111.80. The pivot point is at 112.50.
Resistance levels: 113.60, 113.95, 114.20 Support levels: 112.15, 111.80, 111.30
