USD/JPY is expected to trade in a higher range. Last Friday, US stocks advanced further, driven by energy shares as oil prices continued their rebound. Strong buying was also seen in technology and telecoms shares. Nymex crude oil soared 9.0% to $32.19 a barrel, rallying 21.2% in two days. The Dow Jones Industrial Average gained 1.3% to 16,093, the S&P 500 rose 2.0% to 1,906, while the Nasdaq Composite was up 2.7% to 4,591.

Gold eased 0.3% to $1,097 an ounce, while the benchmark 10-year Treasury yield climbed to 2.052% from 2.021% on Thursday.

Meanwhile, the US dollar strengthened against the euro, the Japanese yen, and the Swiss franc with EUR/USD losing 0.7% to 1.0794, USD/JPY rising 0.9% to 118.77 and USD/CHF gaining 0.9% to 1.0156. On the other hand, boosted by stronger oil prices, the Canadian dollar rebounded against the greenback. USD/CAD dropped 1.0% to 1.4115, losing 3.2% in three days.The pair continued with its uptrend with the bullish intraday outlook being maintained by the ascending 50-period (30-minute chart) moving average. The 20-period moving average stays above the 50-period one. As long as 117.95 holds as the key support, the pair is expected to reach the first upside target at 119.15 (around the high of January 6) and the second one at 119.60 (around the high of January 5).

Trading recommendations:

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 119.15 and the second target at 119.60. In the alternative scenario, short positions are recommended with the first target at 117.45 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 117.10. The pivot point is at 117.95.

Resistance levels: 119.15, 119.60, 119.90

Support levels: 117.45,117.10,116.75