Forex Technical Analysis: Trend potential – Remain short with your take profit at 108.74.

USDJPY – Down

Remain short with your take profit at 108.74.

Technical observation

On the daily chart above, price rose to the resistance zone 111.86-111.64 and was rejected failing to rise above it, as long as USD is contained below the zone, only downwards movements can be expected. Right now price is rallying downwards and I expect more of this movement towards the line 108.74, if you sold USD within 111.86-111.64 after a bounce, hold on to that positions with your take profit at 108.74 and stop loss at 112.66, should there be a clear breakout above 111.86-111.64, wait for a correction to the just broken line and a bounce within it to confirm bullish movements of price before you pick long position towards 114.52.

Trade recommendation

Remain short with your take profit at 108.74.

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