FX.co ★ USD/JPY remain bearish below our major resistance

Price continues to drop slowly from our selling area. We remain bearish below major resistance at 112.08 (Fibonacci retracement, horizontal pullback resistance, Elliott wave theory) for a drop towards 110.50 support (Fibonacci extension, horizontal overlap support).

Stochastic (55,5,3) is reversing below our 93% resistance as we expect a strong drop from here.

Correlation analysis: We're expecting general JPY strength with EUR/JPY expecting a drop too.

Sell below 112.08. Stop loss at 112.94. Take profit at 110.50.