FxWirePro: USD/JPY edges lower from session highs at 121.49, good to sell rallies

Yen is still in bullish territory despite equities opening higher, Nikkei had been performing well last week and is continuing to do so.

• USD/JPY earlier in the Asian session tested session highs at 121.49, but was rejected ahead of major channel resistance at 121.63
   
• At the time of writing USD/JPY is trading at 121.16, with immediate resistance at 121.48 Oct 23rd high) and support at 120.95 (200 DMA)
   
• The pair has been trading in a narrow range between 121.25 and 118.05 since Sept 1st, and is currently trading close to the channel resistance
   
• Price looks overbought on daily charts, correction lower looks likely, Stochs and RSI on weeklies are also biased lower
   

Recommendation: Sell USD/JPY rallies around 121.25/30, SL: 121.80, TP1: 120.70, TP2: 120.25 

Resistance Levels:

R1: 121.48 (Oct 23rd high) 

R2: 121.63 (Aug 31st high)

R3: 121.72 (Aug 28th high)

Support Levels:

S1: 121.06 (Session lows)

S2: 120.95 (200 DMA)

S3: 120.67 (Cloud base)