FxWirePro: USD/JPY key resistance at 120.63, bearish in the short term

USD/JPY has  rebounded  strongly after hitting minor resistance level  at 119.35 to reach levels  at 120.18, however strong resistance can be seen at 120 40 levels and this area is set to act has strong barrier to the bulls. The pair is set to flatter well below this level, the Japanese yen is set gain against US dollar as the yen is set to attract safe heaven bids head of this week's key FOMC meeting.

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 119.23 levels.

Major resistance can be seen at 120.63, a break above this level will open the door to 121 levels.

Recommendation: We prefer short   below 120.60, targets 119.80, 119.50, SL 121.10.

Resistance Levels

R1: 120.30 (61.8% Retracement Level) 

R2: 120.63 (Sep 15th high)

R3:120.83 (Sep 14th high)

Support Levels

S1: 119.97 (50 % Retracement Level)

S2: 119.63 (38.2 % Retracement Level)

S3:119.23 (23.6 % Retracement Level)