FxWirePro: Risk-off conditions benefiting yen, good to sell USD/JPY rallies

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)