USD/JPY is expected to continue the upside movement. The pair is holding on the upside, and is trading above its rising 50-period moving average, which plays a support role and maintains the upside bias. The relative strength index stands firmly above its neutrality level at 50 and is heading upward.
Therefore, as long as 113.30 is support, look for another rise to 114.35 and even to 114.60 in extension.
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 114.35 and the second one at 114.60. In the alternative scenario, short positions are recommended with the first target at 112.85, if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 112.40. The pivot point is at 113.30.
Resistance levels: 114.35, 114.60, and 115.00
Support levels: 112.85, 112.40, and 111.90
