USD/JPY is expected to advance further. The pair is holding on the upside and is trading above the rising 20-period and 50-period moving averages which play support roles and maintain the bullish bias. The relative strength index is above its neutrality level at 50.
Therefore, as long as 111.50 is not broken, look for a further rise to 112.30 and even to 112.55 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 112.15 and the second one at 112.45. In the alternative scenario, short positions are recommended with the first target at 111.00 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 110.65. The pivot point lies at 111.20.
Resistance levels: 112.30, 112.55, and 112.85
Support levels: 111.20, 111.00, and 110.60
