FX.co ★ USDJPY Potential For Bearish Continuation | 18th July 2022

On the H4, with price reversing off stochastic resistance, we have a bearish bias that price will drop to our 1st support at 137.817 where the pullback support, 78.6% fibonacci projection and 23.6% fibonacci retracement. Once there is downside confirmation of price breaking 1st support, we would expect bearish momentum to carry price to 2nd support at 136.661 in line with overlap support and 38.2% fibonacci retracement. Alternatively, price could rise to 1st resistance at 139.377 where the swing high resistance is.

Trading Recommendation

Entry: 137.817

Reason for Entry:

Pullback support, 78.6% fibonacci projection and 23.6% fibonacci retracement

Take Profit: 136.661

Reason for Take Profit:Overlap support and 38.2% fibonacci retracementStop Loss: 139.377

Reason for Stop Loss:

swing high resistance