Usd/Jpy Long Idea
So this pair i have had my eye on it all week. Touching Monday London session, we seemed to be in a downward channel which we evidently broke out of due to an increase in buying pressure. Having a bullish overall trend on this pair on the weekly timeframe i deemed it to only be accessible to buys for the moment, so this is a perfect opportunity to have a set order at the current price I have it at. Looking down the 4hr, a point of previous support and a new resistance has been formed, which is clearly visible, so price action itself is looking clean and healthy, which enticed me to look for further confluences to pin point a entry. Drawing the Fiboncci tool from the last bearish candle push to the recent high, we mark our entry just at the 61.8 level, which is perfect in my opinion. Secondly, we saw the ATR is just below our entry point by 3 pips, which gives a strong indication that we won't over extend to the downside. My stop loss is placed just underneath a 1hr High low as if we were to see a break of that level i would deem the trade to be invalid. Take Profit is at a weekly resistance, but you know what they say, the more you hit something, the likely hood of it breaking, so if we do reach our target i would be looking for longs again to support the overall trend.
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