FXStreet (Bali) - Sellers are in full force in the USD/JPY market, now briefly breaking through the 119.55 NY low level, to set the lowest level since Oct 2 at 119.53. Nikkei 225 a drag for Yen crosses The Nikkei 225, which has been extending its losses in the first hour of trading in Tokyo, currently at -1.53%, tracking losses in Wall Street (SP500 -0.68%), has been a major drag for the Japanese Yen crosses so far. USD/JPY: key levels for the day Looking at the key level for today, a decisive breakout of 119.50, where the daily S1 will intersect with price, will allow further losses towards 119.25 - daily S2 - ahead of 119.00 - ATR14 + daily S3 -. On the upside, between 119.90 and 120.00 is where most of the sellers are likely camped to defend the intraday price control. Market may see slippy action if key levels broken Note that the market remains selling volatility in the USD/JPY options market, which tends to result in inside out trades to depress a pair in a limited range rather than protecting key edges on gamma scalping strategies. What this means is that if we were to see a major breakout of key levels such as 119.00 to the downside, the market will probably turn quite slippy as option players will likely have to hedge risk by fueling even further a potential breakout event of a key level. For more information, read our latest forex news.