FxWirePro: USD/JPY approaching resistance level at 123.72, buy deals are recommended above 123.50

 

 

• USD/JPY is approaching to test resistance level at 123.72. The pair started to rebound from  123.40 levels , as the focus now is shifting to Fomc meeting minutes later in the day , traders are keenly awaiting the meeting  to know, when Fed's will raise the interest rate. Any hawkish statement from Fed will take the pair towards higher levels towards 124.00 and 124.50 levels.

• Strong support can be seen at 123.44, a break below this level will expose the pair to next support level at 122.00 handle.

• Major resistance can be seen at 123.89 (23.6 % Retracement Level), a break above this level will open the door to 124.00 handle.

 

Recommendation: We prefer long above 123.50, targets 123.80, 124.20, SL 122.80.

Resistance Levels

R1: 123.72 (38.2% Retracement Level)

R2: 123.89(23.6% Retracement Level)

R3: 124.08 (July 24^th high)

Support Levels

S1:123.58 (July 23^rd lows)             

S2:123.44 (61.8% Retracement Level)

 S3: 123.27 (July 27^th   lows)