USD/JPY is rebounding. The pair rebounded from 108.45 and broke above its declining trend line since January 23. A bullish cross between the 20-period and 50-period moving averages has been identified. The relative strength index is bullish and calls for a further upside.
Therefore, as long as 108.60 is not broken, look for the continuation rebound with targets at 109.80 and 110.10 in extension.
Alternatively, if the price moves in the opposite direction, a short position is recommended below 108.60 with a target of 108.35.
Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.
Strategy: BUY, stop loss at 108.60, take profit at 109.80.
Resistance levels: 109.80, 110.10, and 110.55
Support levels: 108.35, 108.00, and 107.50.