FX.co ★ USDJPY Potential Short-term Bearish Drop | 27th 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 and drop from 1st resistance in line with previous high ,127.2% Fibonacci projection and 127.2% Fibonacci retracement towards 1st Support in line with horizontal support, 100% Fibonacci projection and 78.6% Fibonacci retracement. Our bearish bias is further supported by stochastic where the %K line dropped from the resistance.