FxWirePro: USD/JPY approaching support level at 124.50, upside prevails in the short term

 

• USD/JPY is approaching to test support level at 124.50 (Aug 6^th lows), the pair is set to advance further towards 125.00 and later 125.30 levels in the short term.

• Strong support can be seen at 124.22, a break below this level will expose the pair to next support level at 123.88.

• Major resistance can be seen at 124.91(38.2 % Retracement Level), a break above this level will open the door to 125.50 handle.

Recommendation: We prefer long above 124.50, targets 124.90, 125.20, SL 124.10.

Resistance Levels

R1: 124.91(38.2 % Retracement Level)

R2: 125.06 (Aug 8^th high)

R3: 125.27 (23.6 % Retracement Level)

Support Levels

S1: 124.50 (Aug 6^th lows)

S2: 124.22 (61.8 % Retracement Level of 122.95 to 125.81)

 S3:123.88 (Aug 4^th lows)