FxWirePro: Good support for USD/JPY at 120 levels, weakness only on breaks below

Data released earlier on Monday was yen-bearish, showed that Japanese output and retail sales fell more than forecast, but market's reaction was largely muted.

• USD/JPY better bid in thin holiday trade, small rally took the major from 120.24 to score 120.55, but then was rejected at highs and is currently at 120.37
   
• Price action has breached strong support at 120.70 on Thursday's trade and remains below the cloud, but daily Stochs are at oversold levels and are on the verge of a bullish crossover 
   
• Good support building ahead of psychological 120.00 level, 120.05 Friday's low, 120.01 (Oct 28 low), breaks below can take the pair to 119 levels
   
• Immediate resistance on the upside is located at 120.70 (Trendline) and further ahead at 120.91 (Cloud Base)

Recommendation: Good to buy dips around 120.20, SL: 119.85, TP1: 120.75, TP2: 120.90.

Resistance Levels:

• R1: 120.80 (Trendline)
• R2: 120.91 (Cloud Base)
• R3: 120.98 (Dec 24 high)

Support Levels: 

• S1: 120.25 (Dec 24 low)
• S2: 120.02 (Daily Low Oct 28)
• S3: 119.96 (50% 118.07-123.77)