USD/JPY off again on de-risking after weak China PMI rekindles China's hard landing concerns
- Asian indexes extended sell-off for the second straight session led by Shanghai stocks amid deteriorating Chinese manufacturing sector activity
- Official Chinese manufacturing PMI gauge contracted for the first time in seven months in August, PMI fell from 50.0 in July to 49.7 in August, its lowest since August 2012
- USD/JPY is currently trading at 120.69, with the day's high at 121.24 and lows at 120.59
- Price action is well below the cloud, Stochs show bearish crossover, RSI is biased lower
- Immediate resistance for USD/JPY is seen at 120.72 (Daily Kijun), while support on the downside is seen at 120.17 (Daily Tenkan)
Recommendation: Good to sell rallies around 120.65, SL: 121.25, TP: 120.20
Resistance Levels:
R1: 120.72 (Daily Kijun)
R2: 120.78 (200-DMA)
R3: 121.74 (Session High Aug 31)
Support Levels:
S1: 120.17 (Daily Tenkan)
S2: 119.79 (Aug 27 lows)
S3: 118.45 (Aug 26 lows)
