FxWirePro: USD/JPY key support at 120.20, buy deals are recommended around 120.20

>USD/JPY has slipped back after hitting session high at 120.66 and is approaching to test support level located at 120.20. The support level at 120.20 is likely to act as strong barrier to the bears and bring a rebound back towards 120.50 and later 120.80 levels, as the US dollar is set gain upper hand against Japanese yen in the back drop of November rate hike by the Fed. Therefore, its good to buy this pair at dips.

>Strong support can be seen at 120.20, a break below this level will expose the pair to next support level at 119.91 (38.2 % Retracement Level).

>Major resistance can be seen at 120.66 (Sep 21st high), a break above this level will open the door towards 121.00 levels.

Recommendation: We prefer long above 120.20, targets 120.60, 120.80, SL 119.10.

Resistance Levels

R1: 120.47 (61.8 % Retracement Level) 

R2: 120.66 (Sep 21st high)

R3:121.00 (Sep 19th high)

Support Levels

S1: 120.20 (50 % Retracement Level)

S2: 119.91 (38.2 % Retracement Level)

S3:119.56 (23.6 % Retracement Level)