20 Oktober 2021, USD/JPY
Technical observation
USD is still trading with an increasing bullish bias above the key level 114.07 it penetrated last week. My expectation is loss of this bullish movement followed by a retracement to the just broken line and a rejection at it to buy USD with my take profit at 121.53 and stop loss at 112.15. In case of a clear breakout above the level 121.53 with a big green candle, I expect price to ascend further towards the level 129.10. On the flip side, in case of a clear breakout below the supportive level 1114.07 with a big red candle, I expect bearish movements of price to the supportive zone 107.84-107.46 after a retracement to the broken line and a bounce at it.
Trade recommendation
Remain neutral.