FX.co ★ USD/JPY reversing perfectly as expected, remain bearish for further drop

The price has started to reverse perfectly from our selling area as expected. We remain bearish looking to sell below 112.65 resistance (Fibonacci retracement, horizontal overlap resistance, bearish divergence) for a further drop towards 110.90 support (Fibonacci retracement, horizontal overlap support).

RSI (55) sees bearish divergence signaling that a strong reversal is impending. However, we see intermediate support at 50% so only a break of this level would confirm a further downside move.

Sell below 112.65. Stop loss is at 113.45. Take profit is at 110.90.