- Data released earlier on Monday was yen-bearish, showed that Japanese output and retail sales fell more than forecast, but market’s reaction was largely muted
- USD/JPY better bid in thin holiday trade, small rally took the major from 120.24 to score 120.55, but then was rejected at highs and is currently at 120.37
- Price action has breached strong support at 120.70 on Thursday’s trade and remains below the cloud, but daily Stochs are at oversold levels and are on the verge of a bullish crossover
- Good support building ahead of psychological 120.00 level, 120.05 Friday’s low, 120.01 (Oct 28 low), breaks below can take the pair to 119 levels
- Immediate resistance on the upside is located at 120.70 (Trendline) and further ahead at 120.91 (Cloud Base)
Recommendation: Good to buy dips around 120.20, SL: 119.85, TP1: 120.75, TP2: 120.90Resistance Levels:R1: 120.80 (Trendline)R2: 120.91 (Cloud Base)R3: 120.98 (Dec 24 high)Support Levels: S1: 120.25 (Dec 24 low)S2: 120.02 (Daily Low Oct 28)S3: 119.96 (50% 118.07-123.77)
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