USD/JPY is expected to trade with a bullish bias. The US stock indices were mixed at Friday's shortened session. The Dow Jones Industrial Average edged down by 0.1% to 17798, the S&P 500 added 0.1% to 2090, while the Nasdaq Composite rose by 0.2% to 5127. Nymex crude oil lost 3.1% to $41.71 a barrel, gold dropped by 1.3% to $1,057 a troy ounce, and the benchmark 10-year Treasury yield declined to 2.213% from 2.232% during the previous session.
The U.S. dollar kept advancing as investors continued to bet the Federal Reserve would raise interest rates next month. The Wall Street Journal Dollar Index gained 0.3% to 90.81. EUR/USD fell 0.2% to 1.0587, GBP/USD dropped 0.4% to 1.5033, while USD/CHF ran up to 1.0330 before settling 0.6% higher at 1.0298, and USD/CAD also gained 0.6% to 1.3371. The pair posted a rebound after touching as low as 122.27 Friday. It is trading around the 20-period intraday (30-minute chart) moving average, which stands above the 50-period one. Meanwhile the relative strength index stays above the neutrality level at 50, lacking downward momentum. The intraday outlook continues to be bullish, and the first upside target is set at 122.95 (around the high of Nov. 25) and the second one at 123.05. decline toward 122.25 (around Friday's low).
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 122.95 and the second target at 123.05. In the alternative scenario, short positions are recommended with the first target at 122.25 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 122.00. The pivot point is at 122.50.
Resistance levels: 122.95 123.05 123.50
Support levels: 122.25 122 121.80