USDJPY: Selling opportunity | 28 December 2022

As USDJPY approaches the 134.500 resistance level, we expect price to react with a bearish reversal to the 131.000 support level, where we will Take Profit. This level coincides perfectly with the 88.6% Fibonacci retracement level, and falls in line with the overall declining trend of USDJPY since October. On a broader view, the Dollar has historically been soft in December following seasonal trends, which would weigh down USDJPY in the short term.

Prices have also tapped into the upper bound of the Bollinger bands, indicating a trespass into the oversold region and an imminent bearish move.