USD/JPY is expected to trade with a bullish bias above 111.00. The pair is trading above the key support at 111.00 (the low of May 19), which should limit the downside potential. The relative strength index lacks downward momentum.
Hence, as long as 111.00 is not broken, look for a rebound to 111.75 (the high of May 18). A break above this level would trigger another upside to 112.20.
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 111.75 and the second one at 112.20. In the alternative scenario, short position is 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 110.25. The pivot point is at 111.00.
Resistance levels: 111.75, 112.20, and 112.50
Support levels: 110.65, 110.25, and 110
