USDJPY is facing bearish pressure, potential for further drop!

Price is facing bearish pressure from our resistance, in line with our descending trend line, horizontal overlap resistance, 23.6% fibonacci retracement and 61.8% fibonacci extension where we could see a reversal below this level. The Ichimoku cloud and 20 period EMA are showing signs of bearish pressure as well.

Trading Recommendation

Entry: 105.164

Reason for Entry:

descending trend line, horizontal overlap resistance, 23.6% fibonacci retracement and 61.8% fibonacci extension

Take Profit: 104.345

Reason for Take Profit:

127.2% fibonacci extension, horizontal swing low support from July 2020

Stop Loss: 105.570

Reason for Stop Loss:

Horizontal pullback resistance, 50% fibonacci retracement