FX.co ★ USDJPY at major resistance area

In our previous posts I mentioned the importance of the resistance area around 110-110.25. Price is showing reversal signs as we get a price rejection. The RSI indicator is also getting rejected. This is bearish sign.

Black lines - triangle pattern

Red line - RSI resistance trend line

USDJPY is challenging the very important resistance area of 110. At current levels I prefer to be bearish as price is very close to resistance/stop level. My risk is very low and the potential reward is a pull back towards 109 at least. The long-term triangle pattern has been broken downwards and we now witness a back test. Next major support is at 107.55. Bulls need to protect this otherwise we could see 106-105.