USD/JPY is expected to trade in higher range as the bias remains bullish. The pair recorded a succession of lower tops and lower bottoms since Dec 16, which confirms a bearish view. The declining 50-period moving average is playing a supportive role, which maintains the downside bias. Additionally, the 116.90 level acts as a key support, which should limit the downside potential. As long as this key level is not broken, look for further rally toward 118.00 and even 118.40 in extension.
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 118.00 and the second one at 118.40. In the alternative scenario, short positions are recommended with the first target at 116.50 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 116.15. The pivot point lies at 116.90.
Resistance levels: 118.00, 118.40, 118.65
Support levels: 116.50, 116.15, 115.75
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2ia6SZ6
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