FX.co ★ USD/JPY Reversed Nicely Off Resistance, Prepare For A Drop!

USD/JPY reversed nicely off its resistance at 110.90 (100% Fibonacci extension, 61.8% Fibonacci extension, horizontal swing high resistance) where we expect the price to fall to its support at 109.53 (100% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing low support).

Stochastic (55, 5, 3) is approaching its resistance at 97% where it still has a lot of downside potential. We have also identified a bearish divergence with the price which contributes to our bearish bias.

Sell below 110.90. Stop loss 111.39. Take profit at 109.95.