USD/JPY is expected to trade with bearish bias as the pair is under pressure. The pair remains well supported by its ascending 50-period moving average, and has crossed above the 20-period moving average, which is a bullish technical signal. Meanwhile, the relative strength index is turning up from its neutrality area at 50, calling for further upside as well. The overall technical configuration is positive and the intraday bias remains bullish.
As long as 113.75 is not broken down, further rise is preferred with 112.70 and 112.15 as targets.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 112.70. A break below this target will move the pair further downwards to 112.15. The pivot point stands at 113.75. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 114.00 and the second one at 114.30.
Resistance levels: 114.00, 114.30, and 114.55
Support levels: 112.70, 112.15, and 111.60
