Short USDJPY, Daily Chart, Potential range, resistance confirmed
This idea is the final part of the previous post regarding the pair. The previous idea is linked below but did not have entry levels at that point. The resistances were confirmed so I will be placing purchase orders at or just above, within the general resistance area.
The first point of entry will be to short at 111.7, take profit at 109.15 and stop loss at 112.15. The stop loss will be just above the further resistance points I have identified. The risk reward ratio is around 5.5:1. The chart shows the take profit at 109.15, however I may be splitting the trade into three different take profits at 109.15, 108.4 and 106.2 (this final one could change, pending price action)
Further to this I may take out a further short entry 111.95. This is still to be determined though. The stop loss would be at or just above 112.15.
The first point of entry will be to short at 111.7, take profit at 109.15 and stop loss at 112.15. The stop loss will be just above the further resistance points I have identified. The risk reward ratio is around 5.5:1. The chart shows the take profit at 109.15, however I may be splitting the trade into three different take profits at 109.15, 108.4 and 106.2 (this final one could change, pending price action)
Further to this I may take out a further short entry 111.95. This is still to be determined though. The stop loss would be at or just above 112.15.
Trade active
It would be possible to add to the short position or enter short here if finding this trade a little late than on publishing. Extra entries suggested at 111.36, but the stop loss would be quite large on my set up at 112.15. Use your own money management and risk strategy principles as guidance if entering short late here.Note
Following recent moves, I am under the impression that momentum in Yen strength and Dollar weakness appears to be running out, therefore I will be reassessing my current trade. Firstly in moving all my take profits to smaller levels such as 109.15.It appears the long and medium term outlook is slowly changing and the 109 level might be a long term floor / support.
I am currently upgrading my analysis, so I will update as I come to more conclusions.
Trade closed: stop reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.