FxWirePro: Yen firmer as as risk-off grips Asia, USD/JPY hovers around 121 handle

USD/JPY halted its recent upward rally and is hovering around 121 handle, slipping from 121.63 levels at day's open

• Dollar weakness seen after risk-aversion resurfaced amid Chinese equities falling back in the negative territory
• Markets pricing in a potential rate hike again on the back of a hawkish weekend of Fed's Fisher, may continue to support USD/JPY higher
• USD/JPY is currently trading at 121.02, with immediate resistance at 121.58 (Broken 2015 up Trend Line), breaks above could see the pair at 122.28 levels
• Support on the downside is seen at 120.65 (Session Low Aug 28) and then at 120.40 (Daily High Aug 25)

Resistance Levels:

R1: 121.58 (Broken 2015 up TL)

R2: 122.28 (100-Day MA)

R3: 122.37 (Daily Cloud Base)

Support Levels:

S1: 120.65 (Session Low Aug 28)

S2: 120.40 (Daily High Aug 25)

S3: 119.80 (Daily Low Aug 27)