Forex Technical Analysis: Trend potential – Sell USD now

USDJPY – Down

Sell USD now

Technical observation

On the daily chart above, USDJPY retraced at a key resistance zone(107.52-107.31) four times before moving down and price is currently within it.I don’t expect a breakout above the zone but a possible rejection of price for bearish movements towards the key line 104.64 and a breakout below it for a further decline in price towards the lower key line 99.81.You can sell USD now within the zone with your take profit at 104.64 and stop loss around 108.25.If price breaks above (107.52-107.31) with a big green candle, wait for a correction to the zone before you enter long positions with USD towards the line 110.11.

Technical levels

Resistance levels

R1.107.52

R2.107.78

R3.108.39

Pivot

107.21

Support levels

S1.106.9

S2.106.55

S3.105.94

Trade signal

Sell USD now with your take profit at 104.64 and stop loss around 108.25.

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