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)
