Technical Analysis Based on Breakout – Remain short

USDJPY – Down

Remain short

Technical observation

Previously while on an upward trend,USD retraced at a key support zone (111.47-111.29),however, on 9th of January this year price dropped drastically and broke below the support zone. On 17th of the same month this year, price retraced to the zone and continued short towards 110.24 and even broke below it.Right now it is still rallying below the line and I expect a retracement to it and a rejection at it to short USD with my take profit at 107.79 and stop loss at 110.92.If If you had sold USD at(111.47-111.29),then I would advise you remain short .In case price breaks above (111.47-111.29), then wait for a retracement to it before you enter long positions.

Technical levels

Resistance levels

R1.111.21

R2.111.5

R3.112.07

Pivot

110.01

Support levels

S1.110.64

S2.110.37

S3.109.8

Trade signal

Short USD at 110.24 with your take profit at 107.79 and stop loss at 110.92.

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