USD/JPY is expected to trade with a bullish outlook. The pair dipped below 112.00 yesterday (December 6) before posting a rebound. Currently, it has shot above the upper Bollinger band, calling for further acceleration to the upside. Meanwhile, the 20-period moving average has just crossed above the 50-period one, and the relative strength index has entered the 60s, confirming a reversal to intraday bullishness. The pair is therefore expected to proceed toward the overhead resistance at 113.10 before advancing further to 113.35. Key support is located at 112.25.
Alternatively, if the price moves in the opposite direction, a short position is recommended below 112.25 with a target of 112.00.
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: 112.25, Take Profit: 113.10
Resistance levels: 113.10, 113.35 and 113.85 Support Levels: 112.00, 111.80, 111.35