Forex Technical Analysis: Trend potential – Wait for a retracement to (108.03-107.770)

USDJPY – Down

Technical observation

The pair on the daily chart above broke below a support zone (108.03-107.77),rallied down up to a key line 105.55 then retarced twice to it,right now it is correcting towards the zone and I expect a possible rejection of it around or within the zone for adecline in price towards 105.55.I would advise you sell USDJPY within or around the zone with your take profit at 105.55 and stop loss around 108.69.if there’s a clear breakout above the zone wait for a correction to it to confirm bullish movement of price before you enter a trade with your target at 110.26.Right now only short positions can be advised towards 105.55.

Technical levels

Resistance levels

R1.107.38

R2.108

R3.109.02

Pivot

107.04

Support levels

S1.106.36

S2.105.97

S3.104.95

Trade signal

Wait for a retracement to (108.03-107.770) to short USD with your take profit at 105.55 and stop loss around 108.69.

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