Wait for a correction to sell USD | 23 April 2021

23 April 2021, USD/JPY

Wait for a correction to sell USD

Technical observation

On the chart above, price recently broke below the supportive zone 108.37-108.22 with a big red candle and is still showing signs of declining even further, I however expect a loss of this bearish movement followed by an increase in price towards the just broken zone. This expected bullish movement is a correction to the zone 108.37-108.22 and I expect the previous supportive zone to act as a resistance in this case for a momentum to the lower side. My advice, remain flat and wait for a correction to the zone 108.37-108.22 and a bounce within it to sell USD with your take profit at the supportive level 104.72 and stop loss at 108.97.

Trade recommendation

Remain flat.

Imelda Maseno
Analyst of «FreshForex» company
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