- USD/JPY pair declined in the US session after weak US durable goods data weakened the dollar. An attempt was made by bears to breach 118.52 supports level in the early US session, however the attempt was unsuccessful as the bulls pulled the pair back towards 118.80 levels.
- Currently the pair is making an attempt to rebound back towards 119.00 levels as the dollar bulls have regained strength in the backdrop of Fridays US GDP data.
- The support level at 118.34 is set to act as strong barrier to bears and initiate further bullish momentum towards 119.30 and later towards 119.80 levels. Therefore, it’s good to buy this pair on dips.
- To the upside, the strong resistance can be seen at 119.00, a break above this level would take the pair towards next resistance level at 119.50.
- To the downside immediate support can be seen at 118.52, a break below this level will open the gates towards next level at 118.34.Recommendation: Go long around 118.34, targets 119.30, 119.80, SL-118.00Resistance LevelsR1: 118.80 (38.2% Retracement level)R2: 119.00 (23.6% Retracement level)R3: 119.27 (Jan 5th high)Support LevelsS1: 118.52 (50 % Retracement level)S2: 118.34 (61.8 % Retracement level)S3: 118.00 (Psychological levels)
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