Source: Forex Analysis
USD/JPY is expected to trade with a bullish outlook. The pair posted a rebound from 111.90 and broke above its 20-period and 50-period moving averages. In addition, a bullish cross between the 20-period and 50-period moving average has been identified. The relative strength index is bullish, calling for a further upside.
Hence, above 112.20, look for a new challenge with targets at 112.75 and 113.00 in extension.
Alternatively, if the price moves in the opposite direction, a long position is recommended above 111.95 with a target at 112.40.
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: SELL, Stop Loss: 111.95, Take Profit: 111.00
Resistance levels: 112.40, 112.70 and 113.05 Support Levels: 111.00, 111.65, 112.00
The material has been provided by InstaForex Company – www.instaforex.com