US dollar gains as post Fed-hike turbulence settles, and as risk appetite improved across markets.
- The greenback momentarily fell to as low as 121.38 against the Yen as volatility briefly followed after the Fed, but then pared losses. Is up 0.2 percent to 122.43 after rising 0.5 percent overnight.
- The pair closed above 200 DMA (121.57) in Tuesday's trade, which is now a strong support on the downside. Stochs have rolled over from oversold and RSI is biased higher.
- USD/JPY is on track to test trendline resistance at 123.35 and further gains could see test of 125 levels.
Recommendation: We find it good to buy dips in the pair around 122.30, SL: 121.55, TP1: 123.35, TP2: 123.50
Resistance Levels:
R1: 122.74 (Nov 26 high)
R2: 122.88 (Nov 27 high)
R3: 123 (Psychological level)
Support Levels:
S1: 122.45 (21 DMA)
S2: 122.07 (10 DMA)
S3: 121.57 (200 DMA)
