Forex Technical Analysis: Trend potential – Wait for a correction to sell USD

USDJPY – Down

Wait for a correction to sell USD

Technical observation

Yesterday price penetrated below a key support level 111.85 with a big red candle. Currently it is correcting to the just broken line and I expect a rejection of price at it for possible bearish momentum towards 109.45. I’m looking to sell this pair at 111.45 with my take profit at 109.45 and stop loss at 112.67. The pair on the daily chart above is on a downwards momentum making only short positions ideal and advisable. On your way downwards the key levels to look for include; 109.45, 107.40 and the lowest support 104.61.Right now wait for a correction to 111.85 and a rejection at it to sell USD with your take profit at 109.45.

Trade recommendation

Wait for a correction to 111.85 to sell USD with your take profit at 109.45 and stop loss at 112.67.

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