Forex Technical Analysis: Trend potential – Wait for a correction to 110.16-109.98 to buy USD.

USDJPY – Down

Technical observation

USD is currently trading above a key supportive zone 110.16-109.98, we expect a correction to the zone and a rejection within it for upwards movement towards 112.35.You can wait for a pullback to the above mentioned zone and a bounce within it to buy USD with your take profit at 112.35 and stop loss at 109.16, Continue long with USD in case of a break above 112.35 followed by a correction and a rejection at it. With USD contained above 110.16-109.98, only long positions can be recommended, short positions may only be advisable in case of a clear breakout below 110.16-109.98 with a big red candle followed by a correction to it.

Trade recommendation

Wait for a correction to 110.16-109.98 to buy USD.

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