FxWirePro: USD/JPY key support at 119.40, bullish extension till 120.50 is likely

USD/JPY has rebounded strongly after hitting minor support level at 119.43 yesterday and is bouncing to test resistance level at 120.00, the support level at 120.45 set to hold the bears from falling further below and push the pair towards higher levels in the short term, as the US dollar is stronger across the board against Japanese yen ahead of Fed Yellen speech later in the day.

• Strong support can be seen at 119.40, a break below this level will expose the pair towards next support level located at 119.00.
• Major resistance can be seen at 120.00, a break above this level will open the gates towards 120.40 levels.

Recommendation: We prefer long above 119.40, targets 120.10, 120.40, SL 118.90.

Resistance Levels

R1: 120.00 (38.2 % Retracement Level) 
R2: 120.33 (Oct 9th high)
R3:120.45 (23.6 % Retracement Level)

Support Levels

S1: 119.61 (50 % Retracement Level)
S2: 119.40 (Oct 20th lows)
S3: 119.22(61.8 % Retracement Level)