FX.co ★ USDJPY is facing bearish pressure

Price is reacting below first resistance at 110.815 which is in line with horizontal swing high and 78.6% Fibonacci extension. It could potentially bearish from first resistance to first support at 109.117 in line with 78.6% Fibonacci retracement and 61.8% Fibonacci extension. Our bearish view is further supported by how stochastic is reacting below the resistance where price dropped in the past. Otherwise price may continue to bullish to second resistance at 111.157 in line with 127.2% Fibonacci retracement and 100% Fibonacci extension.

Trading Recommendation

Entry: 110.815

Reason for Entry: horizontal swing high and 78.6% Fibonacci extension

Take Profit: 109.117

Reason for Take Profit: 78.6% Fibonacci retracement and 61.8% Fibonacci extension

Stop Loss: 119.157

Reason for Stop Loss: 127.2% Fibonacci retracement and 100% Fibonacci extension.