USDJPY reacting off major resistance, watch for further drop!

USDJPY is now reacting off major resistance at 110.29 (Fibonacci retracement Fibonacci extension, horizontal overlap resistance) and a further drop could occur from this level to drive price lower. We’re seeing intermediate support from our ascending support line and 109 (horizontal overlap support, Fibonacci retracement) and a break of this level could trigger a much stronger drop to 108.33 (Fibonacci extension, horizontal swing low support).

RSI (34) has made a bearish exit signaling that a drop could be expected on USDJPY.

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