- USD/JPY has rebounded strongly after hitting support level at 120.24 in the Asian session and is bouncing to test resistance level at 120.76, the support level at 120.33 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, long orders are recommended around 120.33 levels.
- Strong support can be seen at 120.33 (38.2 % Retracement Level), a break below this level will expose the pair towards next support level located at 120.00 (Oct 28th lows).
- Major resistance can be seen at 120.76 (38.2% Retracement Level), a break above this level will open the gates towards 121.00 levels.Recommendation: We prefer long above 120.40, targets 120.80, 121.20, SL 119.60.Resistance LevelsR1: 120.76 (38.2% Retracement Level) R2: 121.05 (23.6% Retracement Level)R3:121.50 (Oct 30th high)Support LevelsS1: 120.56 (50 % Retracement Level)S2: 120.33 (38.2 % Retracement Level)S3: 120.00 (Oct 28th lows)
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