FX.co ★ USDJPY Potential For Bearish Continuation | 28th July 2022

On the H4, with price broken out of the ascending trendline and moving below the ichimoku indicator, we have a bearish bias that price will drop to our 1st support at 134.531 where the swing low support, 61.8% fibonacci retracement, 78.6% fibonacci projection and 161.8% fibonacci extension are. Once there is downside confirmation of price breaking 1st support, we would expect bearish momentum to carry price to the 2nd support at 131.480 where the swing low support is. Alternatively, price could head for 1st resistance at 136.723 where the overlap resistance is.

Trading Recommendation

Entry: 134.531

Reason for Entry:

Swing low support, 61.8% fibonacci retracement, 78.6% fibonacci projection and 161.8% fibonacci extension

Take Profit: 131.480

Reason for Take Profit:Swing low support

Stop Loss: 136.723

Reason for Stop Loss:

Overlap resistance