FX.co ★ USD/JPY analysis for August 02, 2019 - Daily analysis

USD/JPY did strong sell off from yesterday but the key support at the price of 106.79 held successfully, which is sign that there is a chance for potential rally.

Technical picture:

On the daily time-frame I found that USD/JPY did test and reject of the key support 106.79, which is for me sign that selling at this stage looks extremely risky. Due to potential oversold condition and fail breakout of the support, my advice is to watch for buying opportunities with the potential targets at 107.22 and 107.54.

Important resistance levels:

Yellow rectangle – 107.22

Yellow rectangle – 107.54

Important support levels:

Orange horizontal line - 106.79

Daily low – 106.6