Forex Technical Analysis: Trend potential – Re sell around (110.46-110.15)

USDJPY – Down

Re sell around (110.46-110.15)

Technical observation

On the daily chart above,USDJPY has been trading on an upward trend,recently,price retraced to a resistance zone (110.46-110.15) but got rejected and is currently rallying towards a key line 109.79.I expect a possible rejection of price at 109.79 and a correction to the resistance zone to resellUSD with my take profit at 109.79 and stop loss at 110.95.In case price does not get rejected at 109.79 and instead breaks below it, then I would advise you wait for a retracement to the just broken line before you sell USDJPY towards 105.78.If price breaks above (110.46-110.15) then that would be the ideal time to buy USD.

Technical levels

Resistance levels

R1.109.39

R2.109.99

R3.111.25

Pivot

108.72

Support levels

S1.108.13

S2.107.45

S3.106.19

Trade signal

Re sell USD around (110.46-110.15) with your take profit at 109.79 and stop loss at 110.95.

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