USDJPY approaching resistance, potential drop!

USDJPY is approaching our first resistance at 105.27 (horizontal overlap resistance, 23.6% Fibonacci retracement, 61.8% Fibonacci extension). A strong reaction might occur at this level, pushing price down to our major support at 104.63 (100% Fibonacci extension, horizontal swing low support).

RSI (34) is also approaching our major resistance line at 54%, in line with the potential upside before price reaches our first resistance level. A reaction off this level might be a good precursor of a potential drop in price.

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