Technical analysis of USD/JPY for May 11, 2017

USD/JPY is expected to trade in a higher range. The pair validated an intraday triangle pattern, and resumed its uptrend. A bullish cross has been identified between the 20-period and 50-period moving averages, which should confirm a positive outlook. Besides, the relative strength index is bullish above its neutrality area at 50.

To conclude, as long as 113.95 holds on the downside, look for a continuation of the rebound to 114.40 and 114.70 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 114.40 and the second one at 114.70. In the alternative scenario, short positions are recommended with the first target at 113.60 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 113.40. The pivot point lies at 113.95.

Resistance levels: 114.35, 114.70, and 115.00

Support levels: 113.60, 113.10, and 112.65

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis of USD/JPY for May 11, 2017