FX.co ★ USDJPY Short-term Bearish Drop | 23rd Dec 2021

On the H4 timeframe, price is abiding to the ascending channel, showing an overall bullish momentum. However, we can expect a short term bearish momentum from 1st resistance , in line with previous high and 100% Fibonacci projection and drop towards 1st Support in line with horizontal support, 61.8% Fibonacci projection and 61.8% Fibonacci retracement. Our bearish bias is further supported by stochastic where the %K line dropped from the resistance.

Trading Recommendation

Entry: 114.217

Reason for Entry:

Previous swing high and 100% Fibonacci projection

Take Profit: 113.462

Reason for Take Profit:

Horizontal support, 61.8% Fibonacci projection and 61.8% Fibonacci retracement

Stop Loss: 114.490

Reason for Stop Loss:

127.2% Fibonacci projection