USD/JPY is expected to trade with a bullish bias. The US markets were closed for the Thanksgiving holiday yesterday. On the forex front, at a quiet trading session, the US dollar kept its recent gains against most other major currencies. The AUD/USD pair dropped 0.3% to 0.7224 as the Australian government reported that business investment in the country fell 9.2% QoQ in Q3 (vs -2.9% expected). EUR/USD plummeted by 0.2% to 1.0609, while USD/CHF added another 0.2% to 1.0234. The level of 122.45 holds as the key support, which is currently trading above both the 20-period intraday (30-minute chart) moving average and the 50-period one. Meanwhile, the relative strength index stays above the neutrality level of 50 lacking downward momentum. The first upside target is now set at 122.80 (resistance to a rebound in November 25) and the second one at 122.95 (around the high of November 25).

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 122.80 and the second target at 123.05. In the alternative scenario, short positions are recommended with the first target at 122.20 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 122.00. The pivot point is at 122.45.

Resistance levels: 122.80 123.05 123.50

Support levels: 122.20 122 121.80