USD/JPY is expected to continue the upside movement. The pair 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 bullish and calls for a further upside.
To sum up, as long as 111.00 is not broken, look for a rebound to 111.55. A break above this level would trigger a new advance to 111.75.
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 111.55 and the second one at 111.75. In the alternative scenario, short positions are recommended with the first target at 110.70, 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 110.25. The pivot point is at 111.00.
Resistance levels: 111.55, 111.75, and 112.00
Support levels: 110.75, 110.25, and 110.05
