FX.co ★ USDJPY testing 1st resistance, potential for a reversal!

Price is testing 1st resistance, which is in line with our 61.8% Fibonacci retracement, 61.8% Fibonacci extension and descending trendline resistance. We could potentially see price reverse and drop towards our 1st support, which is in line with our 78.6% Fibonacci extension and horizontal swing low support. Price is also holding under the Ichimoku cloud and descending trendline resistance, showing bearish pressure in line with our analysis.

Trading Recommendation

Entry: 108.644

Reason for Entry:

61.8% Fibonacci retracement, 61.8% Fibonacci extension and descending trendline resistance

Take Profit: 108.406

Reason for Take Profit:

78.6% Fibonacci extension and horizontal swing low support

Stop Loss: 108.758

Reason for Stop Loss:

78.6% Fibonacci retracement, 100% Fibonacci extension and horizontal swing high resistance