USDJPY is approaching our first resistance at 105.27 (horizontal overlap resistance, 23.6% Fibonacci retracement, 61.8% Fibonacci extension). A strong reaction might occur at this level, pushing price down to our major support at 104.63 (100% Fibonacci extension, horizontal swing low support). RSI (34) is also approaching our major resistance line at 54%, in line with the potential upside before price reaches our first resistance level. A reaction off this level might be a good precursor of a potential drop in price. Losses can exceed the initial investment so please ensure you fully understand the risks Trading CFDs on margin carries high risk.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.