FX.co ★ USDJPY potential reversal! Drop incoming!

Price is facing bearish pressure as it continues to be below the ascending trendline support (now resistance). We could see price bearish at 1st resistance at 109.960 in line with our 50% Fibonacci retracement and 38.2% Fibonacci extension to further downside towards 1st support at 109.113 in line with 78.6% Fibonacci retracement and 61.8% Fibonacci extension . Our bearish bias is further supported by MACD showing a bearish signal with the signal line above the MACD line. Otherwise price might bullish to 2nd resistance at 110.394 in line with 78.6% Fibonacci retracement and 61.8% Fibonacci extension.

Trading Recommendation

Entry: 109.960

Reason for Entry:

50% Fibonacci retracement and 38.2% Fibonacci extension

Take Profit: 109.113

Reason for Take Profit:

78.6% Fibonacci retracement and 61.8% Fibonacci extension

Stop Loss: 110.394

Reason for Stop Loss:

78.6% Fibonacci retracement and 61.8% Fibonacci extension