Bearish outlook: USD/JPY faces strong resistance at 147.300 – short opportunity alert

USD/JPY is recovering from the recent major drops and is approaching a key resistance of 147.300, from where it will likely drop back to the 140.500 support level. The 147.300 is a major resistance level from where the price is likely to continue the bearish momentum from there.

I am expecting the price will break the current level and take out all the sellers who sold around the 146.500 resistance level and will retrace to the 147.300 resistance level before the drop.

Another confirmation for sell entry around the same level is the 0.38 Fibonacci level, fair value gap and bearish order block around the same level. All the technical indicators indicate a potential drop around the same price level.

Fundamentally, the price of USD/JPY is likely to remain stable today and tomorrow, however, the price will likely get volatile when the Jobless data is published on the US dollar and inflation rate news on the Japanese yen on Thursday and Friday respectively.

If the jobless data turns out negative for the US dollar the price of USD/JPY will likely drop and if the inflation data turns out above the expectations then the price of USD/JPY will likely go up.

• The price of  USD/JPY is likely to drop after retesting the 147.300 resistance level.
•  The price is likely to drop to the 140.500 support level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:4.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

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