21 Oktober 2021, USD/JPY
Technical observation
On the daily chart above USD is trading with an increasing bearish bias between a supportive zone 114.01-113.93 and a resistance level 114.63. This bearish movement is a correction to the zone I have mentioned above and my expectation is a decline in price to the same zone followed by a rejection within it for a momentum to the upper side. My advice, remain neutral and wait for a correction to the zone 114.01-113.93 and a buy a bounce within it with your take profit at 114.63 and stop loss at 113.57. In case of a clear breakout below the zone 114.01-113.93 with a big red candle, I expect the value of USD to plunge to the supportive level 113.05.
Trade recommendation
Remain neutral.