USDJPY – Down
Technical observation
USD declined to the supportive level 126.78 but did not break below it, instead it bounced at the same line and since then it has been trading with an increasing bullish bias. This upwards movement is a correction to the resistance zone 138.25-138.92 and I expect a possible rejection within it followed by a rally to the lower side. My advice, remain flat and wait for a correction to the zone I have mentioned above then sell a bounce within it with your take profit at 126.78 and stop-loss at 142.15. If there is a clear break below the level 126.78 with a big red candle, I expect the value of USD to descend further towards the key levels 112.70 and 102.43.
Trade recommendation
Wait for a correction to the zone 138.25-138.92 to sell USD.
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