FX.co ★ USDJPY potential reversal! Drop incoming.

USDJPY may continue to rise up to 1st resistance at 110.546 in line with 78.6% Fibonacci retracement and 61.8% Fibonacci extension where it could potentially react off and drop down to 1st support at 109.113 in line with 78.6% Fibonacci retracement and 61.8% Fibonacci extension . Our bearish view is further supported by how stochastic is reacting below resistance where price dropped in the past. Otherwise price may continue bullish to 2nd resistance at 111.157 in line with 127.2% Fibonacci retracement and 100% Fibonacci extension.

Trading Recommendation

Entry: 110.546

Reason for Entry:

78.6% Fibonacci retracement and 61.8% Fibonacci extension

Take Profit: 109.113

Reason for Take Profit:

78.6% Fibonacci retracement and 61.8% Fibonacci extension

Stop Loss: 111.157

Reason for Stop Loss:

127.2% Fibonacci retracement and 100% Fibonacci extension