Forex Technical Analysis: Trend potential – Remain short towards 107.50.

USDJPY – Down

Remain short towards 107.50.

Technical observation

On the daily chart above, USD is rallying below a resistance zone marked at 110.01-109.78 and as long as it is contained below this zone only bearish movements of price can be anticipated. If you went short within the zone you can hold on to that position with your take profit at 107.50 and stop loss at 110.97, if you had not sold this pair you can still pick short position now. Should there be a clear breakout below 107.50 then more bearish price rally will be expected towards the lower support marked at 104.61.Long positions may only be recommended in case of a clear breach above 110.01-109.78 towards the key resistance level 114.54.

Trade recommendation

Remain short towards 107.50.

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