USD/JPY: A Bearish Dip Likely

 | Jan 19, 2022 03:38AM ET

Type: Bearish reversal

Key Levels: Resistance: 115.197, pivot: 114.946, and support: 114.293

Preferred Case: USD/JPY is on bearish momentum and abiding by our descending trendline.

We see the potential for a dip from our Pivot at 114.946 in line with 50% Fibonacci retracement towards our 1st support at 114.293 in line with 50% Fibonacci retracement.

Prices are trading below our Ichimoku clouds and RSI is at levels where dips occurred previously.

Alternative Scenario: Alternatively, if prices break above our descending trendline, it can potentially climb higher towards our 1st resistance at 115.197 in line with 61.8% Fibonacci retracement.