Forex Technical Analysis: Trend potential – Buy USDJPY around 107.54-107.34

USDJPY – Down

Buy USDJPY around 107.54-107.34

Technical observation

On the daily chart above,USDJPY after breaking above a resistance zone, it rose up steadily towards a key resistance line 110.17 but it got rejected before it could reached it and is currently retracing to the broken zone 107.54-107.34.I expect a rejection of it within or around the zone for possible bullish rally of price towards 110.17 and a breakout above it for a further rise in price towards the resistance line 111.31,price could continue to rise even further if it breaks above 111.31 too. Right now you can wait for a correction to the zone to buy USD after the second correction with your take profit at 110.17.

Technical levels

Resistance levels

R1.107.84

R2.108.04

R3.108.42

Pivot: 107.70

Support levels

S1.107.45

S2.107.27

S3.106.89

Trade signal

Buy USDJPY around 107.54-107.34 after the second retracement to it with your take profit at 111.31 and stop loss around 106.62.

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