• USD/JPY has rebounded strongly after hitting minor support level at 120.47 in the early American hours to trade at 121.03 levels, the support level at 120.47 set to hold the bears from falling further below and push the pair towards higher levels in the short term, as the US dollar is stronger across the board against Japanese yen in the intraday trading.
  • Strong support can be seen at 120.47, a break below this level will expose the pair towards next support level located at 120.04.
  • Major resistance can be seen at 121.46, a break above this level will open the gates towards 122.00 levels.

Recommendation: We prefer long above 120.60, targets 121.50, 122.00, SL 119.00.Resistance LevelsR1: 121.46 (Oct  26th high) R2: 122.00 (Psychological levels)R3:122.90 (July 7th high)Support LevelsS1: 120.47 (38.2% Retracement Level)S2: 120.04 (50% Retracement Level)S3: 119.56 (61.8 % Retracement Level)

The material has been provided by InstaForex Company – www.instaforex.com