FxWirePro: USD/JPY key support at 118.05, buy deals are recommended above 118.70

USD/JPY pair has slipped sharply to hit support level at 119.68 after US PPI and retails sales printed negative figures, currently the pair is making an attempt to break support level located at 119.21.A breach would take the pair towards 118.64 support level. However downside should be limited around 118.64 and a rebound is expected to take place sooner or later above the said level.

• Strong support can be seen at 119.21, a break below this level will expose the pair to next support level at 118.64.
   
• Major resistance can be seen at 119.95, a break above this level will open the door towards 120.56 (Oct 6th high) levels.
  
  Recommendation: We prefer long above 118.70, targets 119.20, 119.50, SL 118.00.
  
  Resistance Levels
  
  R1: 119.95 (23.6 % Retracement Level) 
  
  R2: 120.56 (Oct 6th high) 
  
  R3: 121.21(Sep 25th high)
  
  Support Levels
  
  S1: 119.21 (38.2 % Retracement Level) 
  
  S2: 118.64 (50 % Retracement Level)
  
  S3: 118.05 (61.8% Retracement Level)