FX.co ★ USD/JPY testing another major support, we prepare for a bounce

The price has dropped further and is now testing another key support level at 110.88 (Fibonacci retracement, horizontal overlap support, Fibonacci extension) and we expect to see a bounce above this level for a short term correction to at least 112.42 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (34,5,3) is seeing nice support above 1.2% where we expect a bounce from.

Buy above 110.88. Stop loss is at 109.97. Take profit is at 112.42.