Trading Plan: Bullish Breakout for USD/JPY
This trading plan focuses on a bullish breakout scenario, where the price clears the resistance range between 156.275 and 156.608 and targets the completion of the Head and Shoulders pattern.
Trading Plan: Bullish Breakout for USD/JPY
This trading plan focuses on a bullish breakout scenario, where the price clears the resistance range between 156.275 and 156.608 and targets the completion of the Head and Shoulders pattern.
1. Market Conditions:
The current market is consolidating near resistance.
A breakout above the 156.608 resistance level signals the potential for a bullish continuation.
The target aligns with the expected completion of the Head and Shoulders formation between 157.753 and 158.070.
2. Entry Criteria:
Trigger for Entry: Place a buy stop order slightly above the upper resistance level at 156.650.
This ensures confirmation of the breakout above the range.
3. Stop Loss Placement:
Place the stop loss below the lower range of the support level at 156.100.
This level accounts for potential false breakouts and keeps the trade risk-controlled.
4. Take Profit Targets:
Target 1 (Conservative): 157.753 (completion of the first measured move in the Head and Shoulders pattern).
Target 2 (Aggressive): 158.070 (completion of the full Head and Shoulders pattern).
5. Risk-to-Reward Ratio:
Entry: 156.650
Stop Loss: 156.100 (50-pip risk)
Take Profit Levels:
Target 1: 157.753 (110-pip reward) → Risk-to-Reward Ratio = 1:2.2
Target 2: 158.070 (142-pip reward) → Risk-to-Reward Ratio = 1:2.8
6. Trade Execution Plan:
Monitor Volume:
Ensure volume increases during the breakout to confirm strength.
Confirm Momentum:
Use indicators like RSI (crossing 50) or MACD bullish crossover for confirmation.
Trading Plan: Bullish Breakout for USD/JPY
This trading plan focuses on a bullish breakout scenario, where the price clears the resistance range between 156.275 and 156.608 and targets the completion of the Head and Shoulders pattern.
1. Market Conditions:
The current market is consolidating near resistance.
A breakout above the 156.608 resistance level signals the potential for a bullish continuation.
The target aligns with the expected completion of the Head and Shoulders formation between 157.753 and 158.070.
2. Entry Criteria:
Trigger for Entry: Place a buy stop order slightly above the upper resistance level at 156.650.
This ensures confirmation of the breakout above the range.
3. Stop Loss Placement:
Place the stop loss below the lower range of the support level at 156.100.
This level accounts for potential false breakouts and keeps the trade risk-controlled.
4. Take Profit Targets:
Target 1 (Conservative): 157.753 (completion of the first measured move in the Head and Shoulders pattern).
Target 2 (Aggressive): 158.070 (completion of the full Head and Shoulders pattern).
5. Risk-to-Reward Ratio:
Entry: 156.650
Stop Loss: 156.100 (50-pip risk)
Take Profit Levels:
Target 1: 157.753 (110-pip reward) → Risk-to-Reward Ratio = 1:2.2
Target 2: 158.070 (142-pip reward) → Risk-to-Reward Ratio = 1:2.8
6. Trade Execution Plan:
Monitor Volume:
Ensure volume increases during the breakout to confirm strength.
Confirm Momentum:
Use indicators like RSI (crossing 50) or MACD bullish crossover for confirmation.
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.