USDJPY, H4 | Potential reversal from 1st resistance?

The current momentum of the USD/JPY chart is bearish, indicating a potential price drop in the near future. A significant resistance level to watch is at 133.76, which is a strong pullback resistance level and coincides with the 78.60% Fibonacci projection. If the price reacts bearishly at this level, it may potentially fall towards the first support at 131.81. This support level is an overlap support and also lines up with the 61.80% Fibonacci retracement level, making it a significant level for a potential price rebound.

If the price breaks below the first support, it may fall towards the second support at 130.53, which is also an overlap support level. However, if the price breaks above the first resistance, it may potentially rise towards the second resistance at 134.08. This is an overlap resistance level and also has the 61.80% Fibonacci retracement level lining up with it, making it a significant level to watch.

Analysis are provided by InstaForex

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