USD/JPY is expected to trade with a bullish bias. The intraday relative strength index is well directed above the neutrality level at 50 calling for a new upleg. As long as 113.30 holds as the key support, the pair should continue its rebound and rise towards the first upside target at 114 and the next target at 114.30.
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 114 and the second one at 114.30. In the alternative scenario, a short position is recommended with the first target at 112.95 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 112.50. The pivot point is at 113.30.
Resistance levels: 114, 114.30, 114.75
Support levels: 112.95, 112.50, 112