FxWirePro: USD/JPY largely range bound, good to buy dips around 121 levels

Yen slumps post BoJ on Friday were quickly faded, USD/JPY initially spiked to session highs at 123.54, but then closed in the red at 121.09 after wild swings.

• On the day, USD/JPY is largely rangebound, trading a 121.03/38 range in Asia, with strong support around 121 levels
   
•  Nikkei weakness likely supporting the yen, Nikkei currently off 270 pts, -1.4% on day @ 18,716, after hitting a low of 18,562 last week 
   
• Price action has been contained within the cloud. immediate resistance is seen at 121.46 (cloud top), while support on the downside lies at 121.00 (78.6% Fib of 123.76-120.34 fall & Psychological Level)

We would buy dips around 121 levels, SL: 120.50, TP1: 121.60, TP2: 122

Resistance Levels:

R1: 121.46 (Cloud top)

R2: 121.50 (100 DMA)

R3: 121.59 (200 DMA)

Support Levels:

S1: 121.00 (78.6% Fib of 123.76-120.34 fall & Psychological Level)

S2: 120.83 (Daily Cloud Base)

S3: 120.58 (Daily Low Dec 15)