FX.co ★ USDJPY short term bearish drop | 24th Nov 2021

On the H4 timeframe, price is abiding to the ascending trendline support, signifying an overall bullish momentum. However, price has approached the 1st resistance in line with 61.8% Fibonacci projection and previous swing high hence, we can expect a potential short-term retracement. We can expect price to drop from 1st Resistance towards 1st Support in line with 61.8% Fibonacci projection and 50% Fibonacci retracement. Our short-term bearish bias is further supported by the stochastic indicator where the %K line is at the resistance level.

Trading Recommendation

Entry: 115.305

Reason for Entry:

61.8% Fibonacci projection and horizontal swing high

Take Profit: 114.466

Reason for Take Profit:

61.8% Fibonacci projection and 50% Fibonacci retracement

Stop Loss: 115.758

Reason for Stop Loss:

100% Fibonacci projection