19 Oktober 2021, USD/JPY
Technical observation
On the chart above, price rose steadily up to the resistance level 114.45 but could not break above it. It bounced at the line and is currently trading with an increasing bearish bias. This bearish movement is a correction to the supportive level 113.23 and I expect it to continue to the same level followed by a rejection at it to buy USD with my take profit at 114.45 and stop loss at 112.78. In case of a clear breakout above the resistance level 114.45, I expect further bullish movements of price after a correction to the broken line, on the flip side, in case of a clear penetration below the supportive level 113.23, I expect USD to plummet to the supportive level 112.07.
Trade recommendation
Remain neutral.