USDJPY is approaching resistance, potential drop!

USDJPY is approaching our first resistance at 108.80 (horizontal overlap resistance, 100% Fibonacci extension, 38.2% Fibonacci retracement). A strong reaction might occur below this level, pushing price down to our major support at 106.66 (horizontal overlap support, 100% Fibonacci extension, 38.2% Fibonacci retracement).

Stochastic (55,5,3) is also seeing a bearish divergence and is approaching our major resistance. A reaction off this level might be a good precursor for a potential drop in price.

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