USD/JPY break below 120 exposes 119.01, good to short rallies

FX:USDJPY   U.S. Dollar/Japanese Yen
220 0 2
USD/JPY             has broken below the 120 handle for the first time since October as Chinese data induced risk-off weighs on USD.

The pair broke below strong trendline support on 24th Dec             and after a brief period on sideways trade has seen sharp slump on the day.

Technically, a break of the psychological 120 handle leaves the downside exposed towards the 119.01 (61.8% Fib of 116.08 to 123.75 rise) ahead of the uptrend at 118.06 ( Oct             15 low).

Moving average studies indicate further downside for USD/JPY             , next significant level of support is at 119.01 (61.8% Fib of 116.08 to 123.75 rise).

Resistance on the upside is located at 120 levels and further ahead at 120.46 (Session high Jan 4).

We find it good to sell rallies around 119.90, SL: 120.50, TP1: 119, TP2: 118.85

Resistance Levels:

R1: 120.46 (Session high Jan 4)

R2: 120.51 ( Dec             29 highs)

R3: 120.57 (10-Day MA)

Support Levels:

S1: 119.01 (61.8% Fib of 116.08 to 123.75 rise)

S2: 118.83 (Daily Low Oct             16)
Trade closed: target reached
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