Forex Technical Analysis: Trend potential – Short USD around (108.44-108.12)

USDJPY – Down

Short USD around (108.44-108.12)

Technical observation

After breaking below a support zone (108.44-108.12),USDJPY traded up to a key support line 108.55,it could not break below it and so it got rejected and is currently rallying towards the broken support zone, I expect a possible rejection of it at the zone to short the pair with my take profit at 105.55 and stop loss around 109.77.If it breaks down below 10555,wait for a correction to it before you continue short. If there’s a clear breach of price above (108.44-108.12),wait for a correction to it before you long USD with your first take profit at 111.40 and the next around 114.32.

Technical levels

Resistance levels

R1.106.56

R2.106.86

R3.107.6

Pivot

106.14

Support levels

S1.105.85

S2.105.39

S3.104.65

Trade signal

Wait for a correction to (108.44-108.12), then sell USDJPY with your take profit at 105.55 and stop loss around 109.77.

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