USD/JPY is expected to trade with a bullish outlook. Despite the pair's retreat from 109.40 (the high of September 6), it is supported by a rising 50-period moving average. Even though a further consolidation cannot be ruled out, its extent should be limited.
Hence, above 108.50, we expect a rebound to 109.40. A break above this level would trigger a new advance to 109.80.
Alternatively, if the price moves in the opposite direction, a short position is recommended below 108.50 with a target at 109.40.
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: 108.50, Take Profit: 109.40
Resistance levels: 109.40, 109.80, and 110.35
Support Levels: 108.30, 107.95, 107.50