USD/JPY dropping nicely, remain bearish for a further drop

Price has started to drop really nicely from our selling area as expected, we do see a lot more downside potential in this move though. Our goal is to remain bearish looking to sell on rallies below major resistance at 114.32 (Fibonacci extension, horizontal swing high resistance, bearish divergence) so that we can get into good positions to play the push down to at least 111.77 support (Fibonacci retracement, horizontal overlap support).

Stochastic (89,5,3) is seeing major resistance below 95% and has made a bearish triangle exit. We can see that it has good downside potential to play the drop further before reaching any significant support.

Sell below 114.32. Stop loss at 115.09. Take profit at 111.77.


The material has been provided by InstaForex Company -