Expectations are ripe for a Fed hike, but there is also the possibility of a dovish tone which could be bad news for the greenback.
USD/JPY had hit session lows at 120.63, but has then pared losses to retake the 121 handle and is currently trading at 121.27.
Strong support is seen by cloud base at 120.66, breaks below could take the pair to 120.22 (61.8% Fib of 118.06 - 123.75 rise).
200 DMA at 121.58 is strong resistance on the upside which could cap upside in the pair, breaks above could see retracements to 122.30 levels.
Daily Stochs show crossover at oversold levels, is also biased higher, scope for further gains.
We find it good to buy dips around 120.90, SL: 120.50, TP1: 121.50, TP2: 122
R1: 121.58 (200-DMA)
R2: 121.86 ( Dec 10 highs)
R3: 122.30 (channel base)
S1: 120.89 (50% Fib of 118.06 - 123.75 rise)
S2: 120.66 (cloud base)
S3: 120.22 (61.8% Fib of 118.06 - 123.75 rise)