Following the release of Japan's Q2 GDP numbers from yesterday, the yen has been on a path to recovery. Now, the price action of the USDJPY looks poised for a reversal from the upper limit of the range, and a possible dropdown to the 61.8 per cent Fibonacci retracement level at 109.522.
The reversal takes place following a failed breakout above the 23.6 per cent Fibonacci and it's substantiated by the fact that the ADX indicator has been threading below the 25-point benchmark since the 19th of August. This confirms the range-trading environment.
An immediate reversal is made even likelier by the fact that the Stochastic RSI is currently threading in its overbought extreme.