FX.co ★ USD/JPY prepare to sell on the break of support

The price has been hovering around our resistance area and forming a very nice reversal pattern. We look to sell on the break of our triangle formation and break of key support at 112.65 (overlap support, triangle support) for a drop towards 110.90 support (Fibonacci retracement, horizontal overlap support).

RSI (55) sees bearish divergence signaling that a strong reversal is impending. However, we see intermediate support at 50% so only a break of this level would trigger a bearish move.

Sell below 112.65. Stop loss is at 113.45. Take profit is at 110.90.