20 Mei 2021, USD/JPY
Technical observation
USD is trading with an increasing bearish bias between a supportive zone it established at 108.50-108.43 and a resistance level 109.89, I expect this bearish movement to continue to the zone I have mentioned above followed by a bounce within it to pick long positions towards the resistance level 109.89. In case price does not bounce within the zone and instead penetrates below it with a big red candle, wait for a correction to the just broken zone and a rejection within it confirming possible bearish movements of price before you pick short positions with your take profit at 106.52 and stop loss at 108.79. Right now we are flat.
Trade recommendation
Remain neutral