- The USD/JPY pair rallied initially to test resistance level at 114.00 in the early European session. However, after failing to break resistance level at 114.05, the pair has slipped back towards 112.55 levels.
- The pair remains under bulls control unless until it trades above 112.00 support level, therefore it is good to buy this pair around 112.60 levels.
- To the upside, the strong resistance can be seen at 113.45, a break above this level would take the pair all the way towards 114.00 levels.
- To the downside immediate support can be seen 112.92, a break below this level will take the pair to next level at 112.55.Recommendation: Go long around 112.60, targets 113.30, 113.80, SL 112.00Resistance LevelsR1: 113.45 (50% Retracement level)R2: 114.05 (38.2% Retracement level)R3: 114.75 (23.6% Retracement level)Support LevelsS: 112.92 (61.8% Retracement level)S2: 112.55 (Session lows)S3: 112.00 (Psychological levels)
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