12 April 2022, USD/JPY
Technical observation
On the chart above, USD rose significantly for several weeks and currently it is trading at the resistance level 125.55. My expectation is either a clear break above the level mentioned above or a correction to the supportive zone it established at 114.15-113.67 followed by a rejection within it to re-sell USD with my take profit at 125.55 and stop loss at 111.13. As long as the value of the pair above is sustained above the zone 114.15-113.67, I can only recommend bullish positions, however, in case of a clear break below the same zone with a big red candle I anticipate a possible surge towards the supportive level 104.44.
Trade recommendation
Remain neutral.