11 November 2021, USD/JPY
Technical observation
On the 4 hour chart above, price did not rally to the lower side as I had predicted yesterday, instead, it rose and broke above the zone 113.34-113.24 with a big green candle and hit our stop loss. As long as USD remains above this zone, I expect a momentum to the upper resistance level 114.26 and a possible breakout above it with a big green candle. Right now USD is trading with an increasing bearish bias above the just broken zone; I expect a continuation of this downwards movement to the zone followed by a bounce within it to buy USD with my take profit at 114.26 and stop loss at 112.72. Continue long after a break above the level 114.26.
Trade recommendation
Remain flat.