FxWirePro: USD/JPY approaching support level at 123.52, buy deals are recommended above 123.55

 

• USD/JPY is approaching to test resistance level at 123.52. The pair started to rebound from 124.00 levels, as US Employment Cost Index printed historically low figures, sending US dollar to session lows. The support level at 123.37 is set to hold the bears and bring a bullish rebound sooner or later.

• Strong support can be seen at 123.52 (July 29^{th lows}) , a break below this level will expose the pair to next support level at 123.37 handle.

• Major resistance can be seen at 123.60 (61.8% Retracement Level)  , a break above this level will open the door to 124.00 handle.

Recommendation: We prefer long above 123.40, targets 123.80, 124.20, SL 122.80.

Resistance Levels

R1: 123.60 (61.8% Retracement Level) 

R2: 124.00 (38.2% Retracement Level) 

R3: 124.24 (23.6% Retracement Level)

Support Levels

S1:123.52 (July 29^{th lows})

S2:123.37 (July 29^{th lows})

S3: 123.00(July 27^th lows)