USDJPY approaching resistance, potential drop!

USDJPY is approaching our first resistance at 106.99 (horizontal overlap resistance, 23.6%, 38.2% Fibonacci retracement). A strong drop might occur at this level, pushing price down to our major support at 106.14 (horizontal pullback support, 100% Fibonacci extension, 76.4% Fibonacci retracement). A breakout below our intermediate support at 106.70 (50% Fibonacci retracement, 61.8% Fibonacci extension, Horizontal pullback support) and short term ascending support line might provide the bearish acceleration to our major support level.

Stochastic (89,5,3) is also reacting off our major resistance along with a bearish exit seen. We might see a corresponding drop in price.

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