USD/JPY is expected to trade with bullish outlook above 113.55. The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the upside bias. The relative strength is above its neutrality level at 50 and lacks downward momentum.
Therefore, as long as 113.55 holds on the downside, look for a further upside to 114.30 and even to 114.75 in extension.
Alternatively, if the price moves in the opposite direction, a short position is recommended below 113.55 with a target at 113.30.
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: 113.55, Take Profit: 114.30
Resistance levels: 114.30, 114.75 and 114.90 Support Levels: 113.30, 112.95, 112.70