FxWirePro: USD/JPY below channel resistance at 121.48, good to sell rallies

Greenback broke out of its 120.00-121.60 range against the yen, to reach a two-month high of 121.72 after Yellen signalled Dec rate hikes.

• USD/JPY is off overnight highs, retraced some of the gains and has edged back below channel resistance at 121.48
   
• The pair is currently trading at 121.45, just below channel top at 121.48, with supports on the downside at 121.10 (200-DMA) and then 121 
   
• Convincing breaks above channel top at 121.48 can take the pair to 122 levels, host of vanilla option expirations at 122.00 (USD727 mln) could attract
   
• However, investors are reluctant to push the pair much higher ahead of the release of US Nonfarm Payroll data next Friday
   
• Daily Stochs are at overbought on the verge of a bearish crossover, correction lower likely

Recommendation: Good to sell rallies around 121.48, SL: 121.80, TP: 121.10