USD/JPY is expected to trade with a bullish bias. Key resistance is seen at 119.50. US markets were closed yesterday. This morning, Japan's government reported that the country's 2Q GDP (annualized, seasonally-adjusted) declined 1.2% from the previous quarter (vs -1.8% expected, -1.6% previously estimated). In Australia, the ANZ Roy Morgan Consumer Confidence Index dropped 5.8% from the previous week to 106.7 in the week ended on September 6. The pair is still trading below the key resistance level of 119.50. It is now around the overlapping 20- and 50-period intraday moving averages (MAs, at 119.33). If 119.50 isn't breached, the upside bias will remains calling for an upward movement back to the first upside target at 120.20 .
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 118.50 and the second target at 117.85. In the alternative scenario, short positions are recommended with the first target at 119.20 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 118.90. The pivot point is at 119.50.
Resistance levels: 120.20 120.65 120.95
Support levels: 119.20 118.90 118.25
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