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)
