Forex Technical Analysis: Trend potential – Wait for a correction to (108.55-107.74)

USDJPY – Down

Wait for a correction to (108.55-107.74)

Technical observation

On the weekly chart above,USDJPY broke above a resistance zone (108.55-107.74) then rose up. Price then retraced to the zone and failed to break below it and was contained at the zone with four retracements to it making it a key support zone. Last week, price broke below the zone with a big red candle and is still below it, I expect a correction to the broken zone and a possible rejection of price at it to short USDJPY towards 100.47.Right now only short positions look ideal and can be advised around or within the resistance zone with your take profit at 100.47 and stop loss around 110.26.

Technical levels

Resistance levels

R1.108.32

R2.110.33

R3.113.72

Pivot

106.93

Support levels

S1.104.92

S2.103.54

S3.100.14

Trade signal

Wait for a correction and a rejection to (108.55-107.74) then short USD with your take profit at 100.47 and stop loss around 110.26.

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