USDJPY - Price correction from resistance zone?

PAIR IN FOCUS: USDJPY
ACTION: SHORT
HORIZON: SHORT-TERM

Price climbed strongly into a strong resistance price zone. A bearish engulfing candle on the H4 in the zone could signal a price correction from the zone. Although we have bullish signal on the weekly charting (bullish engulfing candle), price could first correct downwards before continuing the bullish momentum. Look for bullish price action at the TP levels as they may signal a stop of the price correction.

To support my bearish bias, JPY long positioning is strengthening based on the COT report. Analysing the DXY chart, it could be a retest of a rising wedge pattern before a drop, signalling USD weakness.

The TP levels and Stop Loss are indicated on the chart. Remember to manage your risk.

Feel free to discuss and comment, Cheers!

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