Forex Technical Analysis: Trend potential – Wait for a retracement to the zone 114.28-114.01 to buy

USDJPY – Down

Wait for a retracement to the zone 114.28-114.01 to buy

Technical observation

The pair on the weekly chart above rose and broke above a resistance zone 114.28-114.01 with a big green candle, it is still trading with an increasing bullish above the zone however, despite this upwards movement I expect a bearish rally to the just broken zone followed by a rejection within it to pick long positions with my take profit at 123.19 and stop loss at 111.04. It is advisable to only buy after a second retracement to the zone 114.28-114.01 as this confirms the breach above it was not a false breakout. As long as USD remains above the zone mentioned above, I can only anticipate a surge to the upper resistance level 123.19 or even higher.

Trade recommendation

Wait for a correction to the zone 114.28-114.01 to buy USD.

You may check other analytical reviews on FreshForex website. Source: freshforex.com.