- USD/JPY has rebounded after hitting support level at 120.50 and is bouncing above to test resistance level at 121.13, the support level at 120.50 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. Therefore, it’s good to buy this pair on dips.
- Strong support can be seen at 120.50, a break below this level will expose the pair towards next support level located at 120.00.
- Major resistance can be seen at 121.13, a break above this level will open the gates towards 121.80 levels.Recommendation: We prefer long above 120.50, targets 121.00, 121.50, SL 119.10.Resistance LevelsR1: 121.13 (50 % Retracement Level) R2: 121.88 (38.2% Retracement Level)R3:122.71 (23.6 % Retracement Level)Support LevelsS1: 120.50 (61.8 % Retracement Level)S2: 120.00 (Psychological levels)S3:118.63 (Oct 2nd lows)
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