USD/JPY is expected to trade with a bullish bias. The pair is trading above the 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.
Therefore, as long as 110.70 is not broken, look for a new rise to 111.70 and even to 112.05 in extension.
Alternatively, if the price moves in the opposite direction as predicted, short position is recommended below 110.70 with targets at 110.20 and 109.80.
Chart Explanation: The black line shows the pivot point, present price above pivot point indicates the bullish position and below pivot points indicate the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy : BUY, Stop Loss: 110.70, Take Profit: 111.70
Resistance levels: 111.70, 112.05, and 112.45
Support levels: 110.20,109.80, and 109.35
The material has been provided by InstaForex Company – www.instaforex.com