FxWirePro: USD/JPY key support at 120.20, bullish in the short term

USD/JPY pair has made a short pullback to hit daily lows at 119.70 during mid-European session, after sellers stepped in for a short period of time. However, the decline was limited and the pair has started to recover above support level located at 119.55 level. The support level at 119.55 level is set to hold the bears from falling further, and bring a rebound towards higher levels, therefore it's good to buy this pair above 119.60 levels.

>Strong support can be seen at 119.55, a break below this level will expose the pair to next support level at 119.38.

>Major resistance can be seen at 120.45 (61.8 % Retracement Level), a break above this level will open the door towards 120.64 levels.

Recommendation: We prefer long above 119.60, targets 120.00, 120.40, SL 119.10.

Resistance Levels

R1: 120.18 (50 % Retracement Level) 

R2: 120.45 (61.8 % Retracement Level)

R3:120.64 (Sep 21st high)

Support Levels

S1: 119.91 (38.2 % Retracement Level)

S2: 119.55 (23.6 % Retracement Level) 

S3:119.38 (Sep 15th lows)