USDJPY approaching support, watch for breakout!

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USDJPY is approaching our first support at 105.26 (horizontal overlap support, 50% Fibonacci retracement, 100% Fibonacci extension). A breakout of this level might cause a strong reaction, pushing price down to our major support at 104.62 (horizontal swing low support, 61.8% Fibonacci extension).

RSI (89) is also seeing a short squeeze and is approaching its descending resistance line. A reaction off its resistance and breakout of its short term ascending support line might be a good precursor of a potential drop in price.

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