Forex Technical Analysis: Trend potential – Wait for a correction to109.04-108.80

USDJPY – Down

Wait for a correction to109.04-108.80

Technical observation

USD/JPY went down below a support zone 109.04-108.80 with a big red candle, I expect a correction to it for possible bearish momentum, I would advise you wait for a correction to it before you short USD/JPY. You cam short USD/JPY on the second retracement to it just to make sure it is not a false breakout since the pair was on an upward movement. In case it is a false breakout and price breaches above the zone, wait for a correction to it then continue long with the pair towards the resistance line 111.06.Right now wait for the retracements to 109.04-108.80 to short the pair on the second retracement.

Technical levels

Resistance levels

R1.109.62

R2.109.85

R3.110.32

Pivot

109.39

Support levels

S1.109.14

S2.108.89

S3.108.41

Trade signal

Wait for a correction to 109.04-108.80 to short USD/JPY on the second retracement to the zone.

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