USD/JPY regains upwards momentum, key support at 121.29

USD/JPY surged above to hit session high after US dollar was supported by positive CPI data from the US market. The pair initially was trading around 120.80 levels, However, after the CPI data the currency pair bounced to trade around 121.80 levels .

• The support level at 121.29 is likely to act as strong barrier to the bears and bring a rebound back towards 121.50 and later 122.40 levels, as the US dollar is set gain upper hand against Japanese yen in the back drop of tomorrows FOMC statement. 
   
• Strong support can be seen at 121.29, a break below this level will expose the pair to next support level at 121. resistance can be seen at 122.04, a break above this level will open the door towards 122.57.

Recommendation: We prefer long above 121.30, targets 122.00, 122.50, SL 120.50.

Resistance Levels

R1: 122.04 (38.2 % Retracement Level) 

R2: 122.57 (50% Retracement Level) 

R3: 123.00 (23.6 % Retracement Level)

Support Levels

S1: 121.29 (50 % Retracement Level)

S2: 121.00 (Psychological levels)

S3:120.53 (61.8 % Retracement Level)