Wait for a retracement to the zone 114.28-114.01 to buy

26 November 2021, USD/JPY

Wait for a retracement to the zone 114.28-114.01 to buy

Technical observation

The pair on the weekly chart above rose and broke above a resistance zone 114.28-114.01 with a big green candle, it is still trading with an increasing bullish above the zone however, despite this upwards movement I expect a bearish rally to the just broken zone followed by a rejection within it to pick long positions with my take profit at 123.19 and stop loss at 111.04. It is advisable to only buy after a second retracement to the zone 114.28-114.01 as this confirms the breach above it was not a false breakout. As long as USD remains above the zone mentioned above, I can only anticipate a surge to the upper resistance level 123.19 or even higher.

Trade recommendation

Wait for a correction to the zone 114.28-114.01 to buy USD.

Imelda Maseno
Analyst of «FreshForex» company
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