USD/JPY is expected to trade in a higher range. Overnight, US stocks were range-bound and ended slightly higher with the Dow Jones Industrial Average edging up 0.1% to 17,230, the S&P 500 broadly flat at 2,033, and the Nasdaq Composite gaining 0.4% to 4,905. Nymex crude oil fell 2.9% to $45.89 per barrel and gold was down 0.6% at $1,170.3 per ounce. The benchmark 10-year Treasury yield changed a little at 2.028%. Meanwhile, the greenback remained firm against most other major currencies with the Wall Street Journal Dollar Index gaining 0.3% to 87.24. EUR/USD slid 0.2% to 1.1324, USD/CAD rose 0.8% to 1.3017, and USD/CHF was up 0.3% at 0.9562. The pair keeps trading on the upside around the 20-period intraday moving average (MA), while being supported by the 50-period intraday MA. The intraday relative strength index (RSI) is around the neutrality level at 50 lacking downward momentum. The intraday bias remains bullish and the pair is expected to rise to the first upside target at 120.20 (around the high of October 16). The second upside target is set at the horizontal overlapping level at 120.35.
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. As long as the price holds above its pivot point, long positions are recommended with the first target at 120.20 and the second target at 120.35. In the alternative scenario, short positions are recommended with the first target at 118.90 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 118.60. The pivot point is at 119.15.
Resistance levels:120.20 120.35 120.75
Support levels: 118.90 118.60 118.25