FxWirePro: USD/JPY slips below the 120 handle, good to short rallies

USD/JPY has broken below the 120 handle for the first time since October as Chinese data induced risk-off weighs on USD.

• The pair broke below strong trendline support on 24th Dec and after a brief period on sideways trade has seen sharp slump on the day.
   
• Technically, a break of the psychological 120 handle leaves the downside exposed towards the 119.01 (61.8% Fib of 116.08 to 123.75 rise) ahead of the uptrend at 118.06 (Oct 15 low).
   
• Moving average studies indicate further downside for USD/JPY, next significant level of support is at 119.01 (61.8% Fib of 116.08 to 123.75 rise). 
   
• Resistance on the upside is located at 120 levels and further ahead at 120.46 (Session high Jan 4).

Recommendation: Good to sell rallies around 119.90, SL: 120.50, TP: 119

Resistance Levels:

R1: 120.46 (Session high Jan 4)

R2: 120.51 (Dec 29 highs)

R3: 120.57 (10-Day MA)

Support Levels:

S1: 119.45 (Session lows Jan 4)

S2: 119.01 (61.8% Fib of 116.08 to 123.75 rise) 

S3: 118.83 (Daily Low Oct 16)