USD/JPY is expected to trade with a bullish bias. The US stock indices managed to close higher overnight after logging losses earlier in the session, after reports said a Russian jet was downed by Turkey near the Syrian border. The Dow Jones Industrial Average edged up 0.1% to 17812, the S&P 500 gained 0.1% to 2089, and the Nasdaq Composite was broadly flat at 5102. Nymex crude oil surged 2.7% to $42.87 a barrel, and gold rebounded 0.6% to $1075 a troy ounce. Meanwhile, the benchmark 10-year Treasury yield settled at 2.243%, down from 2.250% in the previous session.

Meanwhile, the U.S. government reported that 3Q GDP rose 2.1% on a seasonally adjusted annual basis, up from an initial estimate of 1.5%. However, the Conference Board's consumer confidence index slumped to 90.4 in November from 99.1 in October. The U.S. dollar gave back some of its recent gains, with EUR/USD edging up 0.1% to 1.0640, USD/JPY dropped 0.3% to 122.51, and AUD/USD rose 0.8% to 0.7253. On the other hand, GBP/USD lost 0.3% to 1.5083 as Bank of England Gov. Mark Carney commented that a low interest rate environment is likely to persist. The pair is maintaining its rebounding momentum. The bullish bias is maintained by the ascending 20- and 50-period moving averages. And the relative strength index, riding on a rising trend line, is well directed above the neutrality level at 50. The first upside target is set at 122.80 and the second one at 123.05.

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 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 121.80. The pivot point is at 122.20.

Resistance levels: 122.80 123.05 123.50

Support levels: 122 121.80 121.45