USDJPY is approaching its major resistance at 106.43 (horizontal overlap resistance, 50% Fibonacci retracement, 100% Fibonacci extension). A strong reaction might occur at this level pushing price down to our next major support at 105.63 (horizontal swing low support) which coincides with our short term ascending support line.
Stochastic (21,5,3) is approaching its major resistance at 74% and a reaction off this level would be a good precursor for a potential drop in price.
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