USD/JPY fell to hit session lows by 116.66 but has quickly pared losses to regain the 117 handle and is currently trading at 117.25.
The pair has strong support at 116.50, breaks below could take the pair to 115.80 levels.
On the upside the pair finds strong resistance by 5-DMA at 117.50, and further ahead at 117.76 (10-DMA).
On the , and Stochs are in oversold territory, but do not show any buy signals for now.
We would wait for confirmation to go long:
-Break above 5-DMA at 117.50
- Stochs and rollover from oversold territory
- Positive line crossover on signal line
On the flipside, if the pair breaks below 116.50, then we would go short for 115.80 levels.
R1: 117.50 (5-DMA)
R2: 117.76 (10-DMA)
R3: 118.07 (Jan 12 highs)
S1: 116.50 ( support)
S2: 116.08 (Aug 24th lows)
S3: 115.85 (Jan 16th lows)