Two Potential Cyphers on USDJPY
As I was looking over my charts getting ready for my live trading room stream, I found these two potential opportunities on USDJPY! Both are bearish and both can be used as an alternate entry for a trend continuation trade to the downside.
The first cypher in blue, will potentially complete @ 114.854. Minimum stops need to be above X at 115.442 with the traditional target 1 at the 38.2 fib retracement "114.055" and target 2 at the 61.8 fib retracement "113.559". The second cypher in red, will potentially complete @ 115.969. Minimum stops need to be above X at 116.858 with target 1 at 114.746 and target 2 at 113.989.
Now on the chart the traditional targets are Red & Green and both of them (depending on where you place your stops) have around a 1:1 Reward/Risk for target 1 and a 1.5:1 Reward/Risk for target 2. Now if you use the alternate targets (Red & Blue) your Risk/Reward is drastically improved. Target 1 is better than a 2:1 Reward/Risk and Target 2 (Using a 127.2 Fib Ext.) is almost 3.5:1 Reward/Risk.
As always, follow your Plan. If you would like to join me in the live stream here is the link: http://www.youtube.com/channel/UCzmQLmi44Kcia-iuvV2qvaA/live
Good luck and Good Trading!
The first cypher in blue, will potentially complete @ 114.854. Minimum stops need to be above X at 115.442 with the traditional target 1 at the 38.2 fib retracement "114.055" and target 2 at the 61.8 fib retracement "113.559". The second cypher in red, will potentially complete @ 115.969. Minimum stops need to be above X at 116.858 with target 1 at 114.746 and target 2 at 113.989.
Now on the chart the traditional targets are Red & Green and both of them (depending on where you place your stops) have around a 1:1 Reward/Risk for target 1 and a 1.5:1 Reward/Risk for target 2. Now if you use the alternate targets (Red & Blue) your Risk/Reward is drastically improved. Target 1 is better than a 2:1 Reward/Risk and Target 2 (Using a 127.2 Fib Ext.) is almost 3.5:1 Reward/Risk.
As always, follow your Plan. If you would like to join me in the live stream here is the link: http://www.youtube.com/channel/UCzmQLmi44Kcia-iuvV2qvaA/live
Good luck and Good Trading!
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