FxWirePro: Strong support for USD/JPY at 120.70, weakness only on breaks below

USD/JPY trades a tight 121.08/31 range in Asia, Doji was formed in Monday's trade and price action was contained completely within the cloud.

• Range trade likely to extend in holiday thinned trading ahead of the new year, pair going nowhere fast again
   
• On the weekly charts, MACD and signal lines show bearish crossover, price action has dipped into the cloud where cloud top at 121.50 is seen capping upside
   
• Watchout for breaks below trendline support at 120.70 for further weakness, pair could then target 120 levels and further below 119, if the pair holds support at 120.70, test of 121.65 likely

Resistance Levels:

R1: 121.47 (100 DMA)

R2: 121.56 (Cloud top)

R3: 121.94 (Daily Tenkan)

Support Levels:

S1: 121.00 (78.6% Fib of 123.76-120.34 fall & Psychological Level)

S2: 120.83 (Daily Cloud Base)

S3: 120.70 (Trendline support)