USD/JPY is expected to trade with bullish bias above 110.90. The pair has bounced up from another test of support at 110.90 and is likely to challenge its 50-period moving average in sight. The relative strength index is below its neutrality level at 50 but reversing up.
As long as the key level at 110.90 is not broken, we keep our positive view unchanged with an up target at 110.65. A break above this level would call for a further upside toward 110.30.
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 111.50 and the second one at 111.80. In the alternative scenario, short positions are recommended with the first target at 110.65 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 110.30. The pivot point is at 110.90.
Resistance levels: 111.50, 111.80, and 112.00
Support levels: 110.65, 110.30, and 109.85
