• The USD/JPY inched higher on Tuesday as rebound in US stocks and strong US GDP data supported dollar bulls.
     
  • Gross domestic product increased to  1.1 percent, better than the 0.8 percent pace reported last month.
     
  • Further downside is expected to be limited as the pair finds strong support at 102.06 which should limit downside and bring rebound back towards higher levels.
     
  • To the upside, the strong resistance can be seen at 103.26, a break above this level would take the pair towards next resistance level at 104.00.
     
  • To the downside immediate support can be seen at 102.06, a break below this level will open the door towards next level at 101.35.

    Resistance Levels

    R1: 102.80 (38.2% Retracement Level)

    R2: 103.26 (June 24th high)

    R3: 104.00 (Psychological levels)

    Support Levels

    S1: 102.06 (50% Retracement Level)

    S2: 101.35 (61.8% Retracement Level)

    S3:100.50 (June 24th lows)

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