Improving risk-appetite saw USD/JPY gain momentum, the pair tested 118.93 high before it found fresh offers.
- Doji formation seen in the Asian session, bulls unable to take the pair higher, Stochs have approached overbought zone, so caution advised.
- Further upside can be seen only on breaks above 119, 120.50 next likely target for bulls.
- On the otherside, close below 5-DMA at 118.55 could see drop till 117.55.
Resistance Levels:
R1: 118.93 (Session highs)
R2: 118.95 (38.2% Fib of 123.76 to 115.97 fall)
R3: 119.17 (Jan 6th highs)
Support Levels:
S1: 118.55 (5-DMA)
S2: 118.04 (Jan 27th lows)
S3: 117.92 (10-DMA)
