USDJPY is approaching our first resistance at 113.65 (61.8% Fibonacci extension, horizontal pullback resistance, 38.2% fiboancci retracement) and a strong drop might occur below this level pushing price down to our major support at 112.97 (Horizontal swing low support, 100% fibonacci extension, 76.4% fibonacci retracement). Price broke through ichimoku cloud support and we are also seeing a potential head and shoulders reversal.
Stochastic (89,5,3) is also approaching resistance and we might see a corresponding drop in price should it react off this level.
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