The USD/JPY pair has recently reached a 4H Order Block and reacted accordingly, but the most recent minor wave is still an upward movement. To confirm a potential sell entry, we need to wait for a reversal break.
Here's a breakdown of the situation:
4H Order Block: This is a significant area of previous buying or selling pressure, and the price reaction suggests its relevance.
Minor Upward Wave: Despite the reaction at the Order Block, the immediate price action shows a small upward movement. This could be a retracement or a continuation of the previous trend.
Reversal Break: To confirm a sell setup, we need to see a clear break below the Order Block or a significant bearish reversal pattern (like a double top or head and shoulders).
Trading Strategy:
Wait for Confirmation: Avoid entering a sell position prematurely. Wait for a confirmed reversal break below the Order Block or a strong bearish signal.
Set Entry: Once the reversal is confirmed, consider entering a sell position with appropriate risk management (stop-loss and take-profit levels).
Monitor Price Action: Keep a close eye on the price action for any signs of a trend change or reversal.
Additional Considerations:
Technical Indicators: Use additional technical indicators (RSI, MACD, etc.) to confirm the bearish bias and increase the probability of a successful trade.
Fundamental Analysis: Stay updated on fundamental news and economic data that could impact the USD/JPY pair.
Risk Management: Always prioritize risk management and avoid risking more than you can afford to lose.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a financial professional before making any trading decisions.
Here's a breakdown of the situation:
4H Order Block: This is a significant area of previous buying or selling pressure, and the price reaction suggests its relevance.
Minor Upward Wave: Despite the reaction at the Order Block, the immediate price action shows a small upward movement. This could be a retracement or a continuation of the previous trend.
Reversal Break: To confirm a sell setup, we need to see a clear break below the Order Block or a significant bearish reversal pattern (like a double top or head and shoulders).
Trading Strategy:
Wait for Confirmation: Avoid entering a sell position prematurely. Wait for a confirmed reversal break below the Order Block or a strong bearish signal.
Set Entry: Once the reversal is confirmed, consider entering a sell position with appropriate risk management (stop-loss and take-profit levels).
Monitor Price Action: Keep a close eye on the price action for any signs of a trend change or reversal.
Additional Considerations:
Technical Indicators: Use additional technical indicators (RSI, MACD, etc.) to confirm the bearish bias and increase the probability of a successful trade.
Fundamental Analysis: Stay updated on fundamental news and economic data that could impact the USD/JPY pair.
Risk Management: Always prioritize risk management and avoid risking more than you can afford to lose.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a financial professional before making any trading decisions.
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.
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.