FxWirePro: USD/JPY key support at 121.00, buy deals are recommended around 121.10

USD/JPY has slipped sharply to hit hitting session low at 121.29 and is approaching to test support level located at 121.00. The support level at 121.00 is likely to act as strong barrier to the bears and bring a rebound towards 121.50 and later 122.00 levels, as the US dollar is set gain upper hand against Japanese yen as the Federal Reserve is expected to hike interest rate in the next week FOMC meetings.

• Strong support can be seen at 121.00, a break below this level will expose the pair to next support level at 120.80 levels.
• Major resistance can be seen at 121.50, a break above this level will open the door towards 122.26.

Recommendation: We prefer long above 121.00, targets 121.60, 122.00, SL 120.80.

Resistance Levels

R1: 121.50 (38.2% Retracement Level) 

R2: 121.90 (Dec 10th high) 

R3: 122.26 (23.6% Retracement Level)

Support Levels

S1: 121.00 (Psychological levels)

S2: 120.80 (50 % Retracement Level)

S3: 120.20 (61.8% Retracement Level)