- USD/JPY has rebounded strongly after hitting support level at 119.90 to trade around 120.18 levels, currently the pair is approaching to test support level at 119.90. The support level at 119.90 is set to hold the bears from falling further below and bring a rebound towards upside. Therefore, it is good to go long on this pair on dips.
- Levels around 119.90 should be viewed as advantage for buying opportunities, As US dollar is expected to strengthen shortly against the Japanese Yen.
- Strong support can be seen at 119.60 (38.2 % Retracement Level), a break below this level will expose the pair to next support level at 119.19 levels .
- Major resistance can be seen at 120.34, a break above this level will open the door to 120.50 levels.Recommendation: We prefer long above 119.90, targets 120.40, 120.80, SL 119.10.Resistance LevelsR1: 120.22 (61.8% Retracement Level) R2: 120.34 (Sep 30th high)R3: 120.54 (Sep 23rd high)Support LevelsS1: 119.90 (50 % Retracement Level)S2: 119.60 (38.2 % Retracement Level)S3:119.19 (23.6 % Retracement Level)
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