Forex Technical Analysis: Trend potential – Wait for a retracement to buy USD.


Technical observation

USD/JPY is on an upward trend, price rose up to a resistance 112.63 but could not penetrate above it and is currently rallying on a bearish momentum towards 112.00, I expect a loss of this momentum within the key supportive zone 112.00-111.76 followed by possible bullish movement of price. Previously I had bought this pair within 112.00-111.76 and picked my profits at 112.63, now I’m waiting for another correction to the above mentioned zone to re-buy this pair with my ideal target still at 112.63 and stop loss around 110.70.Short positions may only be advisable below 111.76 towards 109.74 or even lower to 107.80.

Trade signal

Wait for a retracement to 112.00-111.76 to buy USD.

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