FxWirePro: USD/JPY key resistance at 120.40, sell deals are recommended around 120.20

USD/JPY is approaching to break resistance level at 120.20. The US dollar has weakened against Japanese yen, after market turmoil in global economy.  The pair is set to decline towards 119.70 levels and later towards 119.20 levels in the short term.

• Currently the pair is trading at 123.95 levels, pullback around 120.40 should be viewed as advantage for selling opportunities.
• Strong support can be seen at 123.77 (23.6 % Retracement Level), a break below this level will expose the pair to next support level at 123.50 handle.
• Major resistance can be seen at 124.20 (61.8 % Retracement Level), a break above this level will open the door to 124.67 (Aug 19th high).

Recommendation: We prefer short below 120.20, targets 119.70, 119.40, SL 121.20.

Resistance Levels

R1: 120.20 (61.8 % Retracement Level)

R2: 124.40 (Aug 25th high)

R3: 121.15(Aug 24th high)

Support Levels

S1: 119.40 (50 % Retracement Level)

S2: 119.13 (38.2 % Retracement Level)

S3: 118.69 (23.6 % Retracement Level)