- USD/JPY is currently trading at 121.20 after making a high of 121.38 on the day likely on short-covering
- Strong channel-top resistance for the pair is located at 121.48, pair cloud retrace gains from that level
- Asian shares rallied with Japanese stocks leading the way, while investors’ bigger risk appetite keeps USD supported
- Breaks above 121.48 (channel-top resistance) can take the pair to 121.70 and further to 122 levels
- Supports on the downside are seen at 120.99 hourly kijun, 120.81 daily tenkan and 121.05 (200 DMA)
- Market focus on Fed speakers and the ADP report in the US session for cues on further direction
Recommendation: Good to sell rallies around 121.25/ 30, SL: 121.70, TP: 120.70
The material has been provided by InstaForex Company – www.instaforex.com