FxWirePro: Strong resistance for USD/JPY at 120.68, good to go short on rallies

Dollar trades weak across the board in the Asian session weighed by risk-off sentiment on downbeat Chinese factory surveys.

• The dollar index, which tracks the U.S. unit against a basket of six major peers, shed about 0.2 percent to 96.753 
   
• Against the Yen, it fell to as low as 120.26, before recovering slightly to currently trade at 120.33
   
• Strong resistance for USD/JPY is located at 120.68 (55 EMA, cloud top), pair was rejected at 120.58 earlier in the Asian session
   
• supports are seen at 20 DMA by 120.15, breaks below could take the pair to next support at 119.62 (Oct 22nd low)
   
• Daily Techs point North, RSI is biased lower and Stochs show bearish crossover from overbought levels

Recommendation: Good to go short on rallies around 120.40, SL: 120.80, TP: 119.70

Resistance Levels:

R1: 120.68 (55 EMA, cloud top)

R2: 121.02 (200 DMA)

R3: 121.19 (Oct 29 high)

Support Levels:

S1: 120.15 (20 DMA)

S2: 119.95 (cloud top)

S3: 119.77 (Daily Kijun)