USD/JPY is expected to trade with bullish bias. Currently at 96.592, the US dollar index is firmly holding after rebounding from a 2-week low of 96.288 seen on Monday as traders are watching closely if the US Federal Reserve gives any hints on the interest rate direction at the FOMC to be concluded at early hours of the Asian session on Thursday. Having rebounded from the level just below 123.00 seen on Monday, USD/JPY maintains its bullish bias trading above both the 20- and 50-period intraday moving averages. The intraday RSI is mixed around the neutral level of 50 lacking downward momentum. As long as 123.30 holds as the key support, the first upside target is set at 123.95 (around the high of July 27); and the second target, at 124.35 (seen on July 23).

Technical comment:

The daily chart is mixed as the MACD is bullish, but stochastics is reaching overbought levels.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 123.95 and the second target at 124.35. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 123. A break of this target would push the pair further downwards, and one may expect the second target at 122.70. The pivot point is at 123.30.

Resistance levels: 123.95 124.35 124.75

Support levels: 123 122.70 122.40