FxWirePro: USD/JPY trades in lower range, scope for uptrend resumption

USD/JPY dropped towards 120.37 levels during early American hours due to trading volumes in the US market remaining low due to holiday season. Currently the pair is approaching 120.00 psychological levels. 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 sooner or later once the major markets open in full swing. 

• Immediate support can be seen at 120.23, a break below this level will expose the pair towards next support level located at 120.00.
   
• Major resistance can be seen at 120.63, a break above this level will open the gates towards 121 levels.
  
  Recommendation: Go long around 119.80, targets 120.50, 121.00, SL 119.50.
  
  Resistance Levels
  
  R1: 120.42 (38.2% Retracement Level) 
  
  R2: 120.63 (Daily high)
  
  R3: 120.85 (23.6% Retracement Level)
  
  Support Levels
  
  S1: 120.23 (Dec 24th lows)
  
  S2: 120.00 (Psychological levels)
  
  S3:119.73 (61.8% Retracement Level)