USD/JPY is expected to trade with a bullish outlook. The pair is rebounding from 113.20 (lows of November 10 and 13). The rising 50-period moving average is playing a support role. The relative strength index is above its neutrality level at 50 and calls for a bounce.
Hence, as long as 113.25 holds on the downside, look for a further rise with targets at 113.80 and 114.05 in extension.
Alternatively, if the price moves in the opposite direction, a long position is recommended below 113.25 with a target at 113.05.
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: 113.25, Take Profit: 113.80
Resistance levels: 113.80, 114.05 and 114.50 Support Levels: 113.05, 112.85, 112.50
The material has been provided by InstaForex Company – www.instaforex.com