17 Februari 2022, USD/JPY
Technical observation
USD retraced to the resistance zone it established at 115.69-115.62 but could not break above it, instead price bounced within the zone and since then it has been trading with an increasing bearish bias. As long as the value of this pair is contained below the zone I have mentioned above, I expect a continuation of this bearish movement to the supportive zone 114.53-114.47. If you are currently holding short positions with this pair, remain in the trade with your take profit at 114.53 and stop loss at 115.99. Should there be a clear penetration below the zone 114.53-114.47 with a big red candle I expect USD to surge further towards 112.74.
Trade recommendation
Remain short with your take profit at 114.53.