We're short towards 106.39 | 11 May 2020

11 May 2020, USD/JPY

We're short towards 106.39

Technical observation

USD pulled back to the resistance zone it established around 106.96-106.92 and could not penetrate above it. Price bounced within the zone 106.96=106.92 and is currently trading with an increasing bearish momentum. The ideal place to sell this commodity was within the above-mentioned zone after a bounce. If you sold USD within 106.96-106.92, remain short with your take profit at 106.39 and stop loss at 107.13. However, if you are currently flat with this pair, wait for another correction to the zone 106.96-106.92 and a rejection within it to sell USD. I can only recommend long positions above the zone 106.96-106.92.

Trade recommendation

Remains short with your take profit at 106.39.

Imelda Maseno
Analyst of «FreshForex» company
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