USD/JPY is expected to trade with bullish bias above 104.50. The pair stands firmly above its nearest support at 104.50, and is likely to post a new bounce. On the economic front, the U.S. Commerce Department reported that personal income rose 0.3% on month in September (vs. +0.4% on month expected) and personal spending increased 0.5% (vs. +0.4% on month expected). The Chicago-area PMI was released at 50.6 in October (vs. 54.0 expected) and the Dallas Federal Manufacturing Activity posted -1.5 in October (vs. +2.0 expected).
The relative strength index is turning up, and is also displaying bullish momentum. In which case, the prices may challenge the next resistance at 105.55 in the coming trading hours, if breakout, look for further advance to 105.95.
Trading Recommendation: The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 105.55 and the second one at 105.95. In the alternative scenario, short positions are recommended with the first target at 104.0.0 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 103.50. The pivot point lies at 104.50.
Resistance levels: 105.55, 105.95, 106.30
Support levels: 104.00, 103.50, 103
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2f8ZaP8
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