USD/JPY is expected to continue its rebound. The pair is going on with its rebound which started at about 112.10 last Friday. Currently, it remains on the upside while being well supported by the 50-period moving average. The relative strength index continues to stay above its neutrality level of 50 showing no downward momentum.
The level at 112.45 holds up well as the key support. On the upside the pair should target 113.05, a high seen on last Thursday, and in extension 113.40.
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 113.05 and the second one at 113.40. In the alternative scenario, short positions are recommended with the first target at 112.10 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 111.90. The pivot point lies at 112.45.
Resistance levels: 113.05, 113.40, and 113.85
Support levels: 112.10, 111.90, and 111.70
The material has been provided by InstaForex Company – www.instaforex.com