- Dollar fell to 6-week low vs safe-haven yen, as the Japanese currency continues to enjoy the safe-haven status against its American counterpart
- China concerns, Shanghai Composite plunge behind market turmoil, set to continue weighing on USD
- USD/JPY likely lower, currently trading at 121.09, with next resistance seen at 121.57 (76.2% of 120.41-125.28), above which it could extend gains to 121.93 (Day’s High)
- Bias remains lower, immediate support might be located at 120.71 (Day’s Low) below which 120.44 (July 9 Low) offer strong support
- Data calendar for the day remains absolutely empty, offering little for further momentum in the pair
Recommendation: Good to sell rallies around 121.30/40, SL: 121.90, TP: 120.70
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