Forex Technical Analysis: Trend potential – Looking to sell

USDJPY – Down

Looking to sell

Technical observation

On the daily chart above,USDJPY retraced at a key zone( 107.91-107.70) thrice before moving down, currently price is within the zone and I expect a rejection of it within it for a possible bearish move towards the key line 104.64,I would advise you wait for a close within the zone to sell USD with your take profit at 104.64 and stop loss around 108.66.In case of a breakout below 104.64,wait for a correction to it then continue short with USD.In case there’s a clear breach above the zone (107.91-107.70) with a big green candle, wait for a correction to the zone then long USD towards the key line 110.24.

Technical levels

Resistance levels

R1.107.52

R2.107.78

R3.108.39Looking to sell

Pivot

107.23

Support levelsLooking to sell

S1.106.9

S2.106.55

S3.105.94

Trade signal

Wait for a close within or around (107.91-107.70) to sell USD towards 104.64.

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