Wait for a pullback to sell USD | 16 March 2020

16 March 2020, USD/JPY

Wait for a pullback to sell USD

Technical observation

On Friday we expected a rebound of price within the zone 106.81-106.63, however, this was not the case as price penetrated above it with a big green candle and continued to rise. I expect a retracement to the just broken zone followed by a rejection within it to pick long positions towards 109.62. In case price is not contained above the zone and instead breaks below it with a big red candle then most probably the break above 106.81-106.63 was false and therefore bearish movements can be anticipated. As long as USD is contained above the zone 106.81-106.63, only long positions can be advisable.

Trade recommendation

Wait for a retracement to buy USD.

Imelda Maseno
Analyst of «FreshForex» company
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