USDJPY is approaching our first resistance at 108.40 (horizontal pullback resistance, 38.2% fibonacci retracement) where a strong drop might occur below this level pushing price down to our major support at 106.62 (horizontal swing low support, 50% Fibonacci retracement). Stochastic (21,5,3) is also approaching resistance where we might see a corresponding drop in price. Trading CFDs on margin carries high risk. Losses can exceed the initial investment so please ensure you fully understand the risks.