USD/JPY is expected to advance further. The pair accelerated on the upside yesterday, and now 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 is above its level of 70 (oversold), but has not displayed any reversal signal yet.
Hence, as long as 113.10 is support, look for a further rise to 113.95 and 114.30 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 113.95 and the second one at 114.30. In the alternative scenario, short positions are recommended with the first target at 112.75 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 111.30. The pivot point is at 113.10.
Resistance levels: 113.95, 114.30, and 114.60. Support levels: 112.75, 112.45, and 112.00.
