Our first target which we predicted in yesterday’s analysis has been hit. USD/JPY is still expected to trade in the upper range as a bias remains bullish. 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 index is above its neutrality level at 50 and lacks downward momentum.
To conclude, as long as 111.80 is not broken, look for a further rise to 112.55 and even to 112.80 in extension.
Alternatively, if the price moves in the opposite direction, a short position is recommended below 111.80 with a target at 111.45.
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: 111.80, Take Profit: 112.55
Resistance levels: 112.55, 112.80 and 113.10 Support Levels: 111.45, 111.20, 110.85