USD/JPY is expected to trade with bullish bias above 113.00. Despite the recent consolidations, the pair stands firmly above its key horizontal level at 113.00, which is likely to limit any downward attempts. The relative strength index is turning up now, and should call for a new rebound. In which case, as long as 113.00 is not broken, look for a new rise to 113.80 and 114.30 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 113.80 and the second one at 114.30. In the alternative scenario, short positions are recommended with the first target at 112.75, if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 112.15. The pivot point is at 113.00.
Resistance levels: 113.80, 114.30, and 114.55
Support levels: 112.70, 112.15, and 111.60
The material has been provided by InstaForex Company – www.instaforex.com