Forex Technical Analysis: Trend potential – Short USD

USDJPY – Down

Technical observation

On the weekly chart above,USDJPY broke below support line 107.98 with a big red candle, price then retraced to the zone before rallying down ,recently price pulled back perfectly to it and is currently around it I expect possible bearish movement of price this week and the weeks to come. I would advise you sell USD now with your take profit at 100.62 and stop loss around 110.17.In case price breaks clearly above the line with a big green candle, wait for a correction to it to confirm price is on a bullish move before you enter long positions with USD towards the key line 114.03 or even up towards 121.13.

Technical levels

Resistance levels

R1.108.03

R2.108.44

R3.109.42

Pivot

107.46

Support levels

S1.107.05

S2.106. 48

S3. 107.05

Trade signal

Short USD now with your take profit at 100.62 and stop loss around 110.17.

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