USD/JPY is expected to trade with a bullish bias above 113.15. The pair has located a key support at 113.30. Currently it has entered a consolidation phase initiated from a high of 113.75 marked yesterday (December 12). It is trading at levels below both the 20-period and 50-period moving averages, and the relative strength index has returned to the levels below the neutrality level of 50. Therefore, the consolidation phase may extend for a while.
However, as long as the key support at 113.15 is not breached, the intraday outlook is still bullish and the pair stands chances of revisiting 113.75 on the upside.
Alternatively, if the price moves in the opposite direction, a short position is recommended below 113.15 with a target of 112.80.
Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.
Strategy: BUY, Stop Loss: 113.15, Take Profit: 113.75
Resistance levels: 113.75, 114.00 and 114.50 Support Levels: 112.80, 112.55, 112.00
The material has been provided by InstaForex Company – www.instaforex.com