FxWirePro: USD/JPY holds above trendline support at 116.50, sell on breaks below

Renewed bout of risk-aversion led by the ongoing rout in oil prices leading to sharp losses in Nikkei and other Asian indices.

• USD/JPY fell to hit session lows by 116.66 but has quickly pared losses to regain the 117 handle and is currently trading at 117.25.
   
• The pair has strong trendline support at 116.50, breaks below could take the pair to 116 levels.
   
• On the upside the pair finds strong resistance by 5-DMA at 117.50, and further ahead at 117.76 (10-DMA).
   
• On the daily charts, RSI and Stochs are in oversold territory, but do not show any buy signals for now.
   

Recommendation: We would sell USD/JPY on breaks below 116.50, SL: 117, TP: 115.60
Resistance Levels:

R1: 117.50 (5-DMA)

R2: 117.76 (10-DMA)

R3: 118.07 (Jan 12 highs)

Support Levels:

S1: 116.50 (Trendline support)

S2: 116.08 (Aug 24th lows)

S3: 115.85 (Jan 16th lows)