Forex Technical Analysis: Trend potential – Wait for correction to (109.07-108.50)

USDJPY – Down

Wait for correction to (109.07-108.50)

Technical observation

On the daily chart above,USDJYP broke down below a key support zone (109.07-108.50) then declined steadily up to a key line 105.55,price got rejected and is currently correcting to (109.07-108.50) and I expect a rejection of it at the zone to enter short position with my take profit at 105.55 and stop loss around 110.16.If price breaks below 105.55 then wait for a correction to it before you sell USD,in case there’s a clear breach above (109.07-108.50) with a big green candle, wait for a retracement to the zone before you enter long positions with your target around 114.32

Technical levels

Resistance levels

R1.106.56

R2.106.86

R3.107.6

Pivot

106.12

Support levels

S1.105.85

S2.105.39

S3.104.65

Trade signal

Wait for a correction to (109.-07-108.50) then sell USDJPY with your take profit at 105.55 and stop loss around 110.16.

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