The USD/JPY preparing to sell on the break of support

The price has been hovering around our resistance area and form a very nice reversal in the trend. We are looking to sell on the break of our triangle formation, and break of key support at 112.65 with overlapping support, triangle bracket) for a drop to 110.90 support (Fibonacci retracement, horizontal overlap support).

RSI (55) sees a bearish divergence signaling that a strong recovery is imminent. However, we see an intermediate support at 50%, so that a break of this level could trigger a bearish move.

Sell below 112.65. Stop loss is at 113.45. Take profit is at 110.90.

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