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)
