USD/JPY has been trading upwards as we expected. The price tested the level of 111.46. We are still expecting more upside on this currency pair.
According to the H4 time-frame, we found that the trend is still strong and the ADX reading at 35 is sign of the healthy trend. In the background inverted head and shoulders did set the upside tone and this is another confirmation of the bullish condition. The USD/JPY is trading in the consolidation phase at the moment and in past 20 hours we are seeing bullish flag in creation, which is another sign that the trend is stable. Flags are integral part of the consolidation in the trend condition. Support levels are seen at 111.20 and 110.85. Resistance levels are seen at 111.70 and 111.90.
Trading recommendation: We are still long USD/JPY from 110.95 with the targets at 111.70 and 111.90. We secured today position on the breakeven so it is risk free position now.The material has been provided by InstaForex Company - www.instaforex.com