FX.co ★ USDJPY Potential For Bearish Continuation | 30th May 2022

On the H4, with prices moving below the ichimoku indicator and passing the basis line of the bollinger band in a downtrend, we have a bearish bias that price will drop from our 1st resistance at 127.164 where the horizontal overlap resistance is to our 1st support at 126.552 in line with the swing low support, 61.8% Fibonacci projection and 23.6% fibonacci retracement. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 128.070 where the horizontal overlap resistance, 61.8% fibonacci projection and 50% Fibonacci retracement are.

Trading Recommendation

Entry: 127.164

Reason for Entry:

Horizontal overlap resistance

Take Profit:126.552

Reason for Take Profit:Horizontal swing low support, 61.8% Fibonacci projection and 23.6% fibonacci retracement

Stop Loss: 128.070

Reason for Stop Loss:

Horizontal overlap resistance, 61.8% fibonacci projection and 50% Fibonacci retracement