FxWirePro: USD/JPY key resistance at 120.40, bearish in the short term

USD/JPY rebounded after hitting minor resistance level  at 119.66 to reach levels  at 120.30 in the European session, however strong resistance can be seen at 120 40 levels, the pair is set to flatter below this level , there for it is good sell on rallies.

• Levels around 120.30 should be taken as advantage for selling opportunities, as safe heaven Japanese yen is set to gain against US dollar in the short term.

• Strong support can be seen at 119.63 (38.2 % Retracement Level), a break below this level will expose the pair to next support level at 119.16 levels.

• Major resistance can be seen at 121.40, a break above this level will open the door to 122 levels.

Recommendation: We prefer short   below 120.30, targets 119.50, 119.00, SL 121.10.

Resistance Levels

R1: 121.40 (61.8% Retracement Level)

R2: 121.31 (Aug 31st high)

R3:122.61 (Aug 28th high)

Support Levels

S1: 120.03 (50 % Retracement Level)

S2: 119.63 (38.2 % Retracement Level)

S3:119.16 (23.6 % Retracement Level)