FxWirePro: USDJPY trades in lower range, scope for uptrend resumption

USD/JPY dropped towards 120.80 levels during mid-morning American hours after home sales data printed negative reading which printed 4.76 million against forecast of 5.35 million units. Nevertheless, decline should be limited as there is scope for rebound as the pair is trading in oversold condition and dollar is set to strengthen against Japanese yen as the Fed is widely expected to hike interest rate further in 2016. 

• Immediate support can be seen at 120.70, a break below this level will expose the pair towards next support level located at 120.30.
• Major resistance can be seen at 121.60, a break above this level will open the gates towards 122 levels.

Recommendation: Go long around 120.70, targets 121.20, 121.70, SL 120.00.

Resistance Levels

R1: 121.31 (December 22nd high) 

R2: 121.60 (38.2% Retracement Level)

R3: 122.11 (Dec 18th high)

Support Levels

S1: 120.92 (50% Retracement Level)

S2: 120.70 (Session lows)

S3:120.30 (Dec 14th lows)