USDJPY Potential Bearish Drop | 9th Feb 2022

Price is trading in an ascending channel signifying an overall bullish momentum, however, we can expect a short-term bearish drop from 1st Resistance level in line with horizontal resistance and 78.6% Fibonacci projection towards 1st Support in line with previous swing low and 100% Fibonacci projection. Our bearish bias is further supported by the stochastic indicator where the %K line is at the resistance level.

Trading Recommendation

Entry:115.598

Reason for Entry:Horizontal resistance and 78.6% Fibonacci projection

Take Profit: : 114.025

Reason for Take Profit:Previous swing low and 100% Fibonacci projection

Stop Loss: 116.150

Reason for Stop Loss:

100% Fibonacci projection