FxWirePro: USD/JPY on track to reclaim 124.50 levels

 

• Broad based US dollar strength pushing USD/JPY higher, trades closer to key 124.50 levels
  
  
• Fed Lockhart's comments that Sept would be the appropriate time to raise interest rates boosted the buck
  
  
• Poor Japanese services PMI data further weighed on the yen, driving USD/JPY higher
  
  
• USD/JPY is currently trading at 124.40, with next resistance located at 124.50 (July 21 High) and above which it could extend gains to 124.63 (Daily High Jun 10)
  
  
• To the downside immediate support might be located at 124 below that at 123.73 (July 21 Low) 
  
  
• Markets await US ADP employment data, trade figures and services PMI report later in the day for further direction
  
  

Resistance Levels:

R1: 124.50 (July 21 High)

R2: 124.63 (Daily High Jun 10)

R3: 124.74 (Daily High Jun 9)

Support Levels:

S1: 123.73 (July 21 Low) 

S2: 123.80 (Session Low Aug 4)

S3: 123.52 (Daily Low Jul 31)