FX.co ★ USD/JPY reacting off our selling area, remain bearish

Price has reached our selling area and reacted off it. We remain bearish below major resistance at 111.37 (Fibonacci retracement, horizontal resistance, Fibonacci extension) and we expect a reaction below this level for a drop to at least 109.41 support (Fibonacci retracement, horizontal overlap support, price gap).

Stochastic (34,5,3) is seeing major resistance at 91% where we expect a drop from. It has also made a bearish exit signalling that a change in momentum is impending.

Sell below 111.37. Stop loss at 112.27. Take profit at 109.41.