FxWirePro: USD/JPY approaching resistance at 119.89, bearish in the near term

• USD/JPY has bounced back from 118.14 levels after failing to break support level at 118.14, currently the pair is trading at 119.80.  The pair is set to decline further towards 119.50 and later towards 119.00 levels, overall Japanese Yen is stronger against US dollar.

• To the upside, the strong resistance can be seen at 120.38 (Aug 25^th high), a break above this level would take it to upside to next resistance level at 121.26 (Aug 24th high) handle.

• To the downside immediate support can be seen at 118.73 (61.8% Retracement level), a break below this level will take the pair to next support level at 118.21 (50 % Retracement Level).

Recommendation: We prefer short below 120.00, targets 119.50, 119.00, SL 120.70.

Resistance Levels

R1: 119.89 (Aug 26^th high)

R2: 120.38 (Aug 25^th high)

R3: 121.26 (Aug 24th high)

Support Levels

S1: 118.73 (61.8 % Retracement Level of 120.40 and  116.13)       

S2: 118.21 (50 % Retracement Level)

 S3: 117.76 (38.2 % Retracement Level)