FxWirePro: Strong support for USD/JPY at 118.30, weakness only on breaks below

USD/JPY extends its losing streak for the fourth straight session, risk-off intensifies after Yuan devaluation, supporting Yen higher.

• The pair hit fresh multi-month lows at 118.35 before attempting a minor recovery to 118.80 levels.
   
• Risk-off sentiment continues to dominate on renewed China woes, underscored by poor PMI data, markets will track sentiment across European equities (tipped for a lower start).
   
• Later in the NY Session US economic data and the FOMC minutes may provide the much-needed impetus to the greenback.
   
• Target levels in the previous call have been met, the pair finds strong support at 118.30 levels, breaks below will target 117.71 (78.6 Fib of 116.08 to 123.76 rise).
   
• On the other side a close above 119.01 which is  61.8% Fib of 116.08 to 123.75 rise will see tests of 120 levels.

Resistance Levels:
R1: 119.01 (61.8% Fib of 116.08 to 123.75 rise)

R2: 119.16 (Session highs Jan 6)

R3: 119.68 (Hourly Cloud Top)

Support Levels:

S1: 118.30 (Trendline support)

S2: 118.07 (Daily Low Oct 15)

S3: 117.71 (78.6%  Fib of 116.08 to 123.75 rise)