Technical Analysis Based on Breakout – Wait for retracement at 110.27

USDJPY – Down

Wait for retracement at 110.27

Technical observation

On the daily chart above, USD Retraced at a resistance zone (111.47-111.29) before continuing lower, Yesterday the pair broke below a support line 110.27 and is still rallying below it.I expect a pullback to the just broken line to enter short position with my take profit at 107.79 and stop loss at 110.92.Incase price breaks above (111.47-111.29) then I would advise you wait for a correction to the zone before you enter long position towards 113.45.Right now only short position looks ideal and can be advised after a retracement to the line 110.27.

Technical levels

Resistance levels

R1.111.21

R2.111.5

R3.112.07

Pivot

112.00

Support levels

S1.110.64

S2.110.37

S3.109.8

Trade signal

Wait for a retracement to 110.27 then sell USD with your take profit at 107.79 and stop loss at 110.92.

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