• USD/JPY pair inched higher in Asian session up to 119.50, but declined slightly after in the early US session after US core inflation printed negative figures.
     
  • The pair has extended its rally for a third day in-a-row, after bottoming at 107.65 on Monday
     
  • Currently the pair is trading around 109.00 levels, a short dip towards 108.80 levels should be viewed as buying opportunities as the support level at 108.44 is set to hold the bears from falling further below and push the pair towards higher levels.
     
  • Strong support can be seen at 108.78, a break below this level will expose the pair towards next support level located at 108.44.
     
  • Major resistance can be seen at 109.50, a break above this level will open the gates towards 109.50 levels.

    Resistance Levels

    R1: 109.15 (50% Retracement Level)

    R2: 109.50 (38.2% Retracement Level)

    R3: 109.50 (23.6% Retracement Level)

    Support Levels

    S1: 108.78 (61.8 % Retracement Level)

    S2: 108.44 (April 4th lows)

    S3: 108.00 (Psychological Level)

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