USD/JPY is expected to trade with bullish outlook. The pair bounced, producing a bullish gap at the open of Asian trading hours this morning. Currently, the pair remains on the upside and is not far away from 112.87, the high of last Friday (December 1). The relative strength index has entered the 60s, showing continued upward momentum for the pair.
As long as the key support at 112.10 is not breached, the intraday outlook remains bullish, and the pair should advance toward the first upside target at 113.25.
Alternatively, if the price moves in the opposite direction, a short position is recommended below 112.10 with a target of 113.25.
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: 112.10, Take Profit: 113.25
Resistance levels: 113.25, 113.65 and 114.00 Support Levels: 111.70, 111.35, 111.00
The material has been provided by InstaForex Company – www.instaforex.com