I have taken a buy position on USDJPY based on a confluence of technical factors supporting a bullish bias:
🔹 Key Weekly Support Zone: Price recently bounced from a strong weekly support level, which has held well in the past, indicating buyers' interest.
🔹 Bullish Daily Candle: On the daily timeframe, a strong bullish candlestick closed above the support level, signaling a potential trend reversal or short-term upside move.
🔹 Trendline Support: On the 4H chart, price is respecting a clear ascending trendline, acting as dynamic support.
🔹 RSI Indicator: RSI is recovering from the oversold zone and showing signs of bullish momentum buildup, supporting a possible upward move.
🔹 200 EMA (Resistance): While the price is still trading below the 200 EMA, this trade targets a move toward that level as the next potential resistance.
🎯 Entry: Near 143.00
🛑 Stop Loss: Below 142.20 (just under recent wick lows)
✅ Take Profit: Around 144.80 (just before the 200 EMA)
Risk-to-reward ratio is favorable, and this setup aligns with higher-timeframe support and confirmation from bullish price action.
🔹 Key Weekly Support Zone: Price recently bounced from a strong weekly support level, which has held well in the past, indicating buyers' interest.
🔹 Bullish Daily Candle: On the daily timeframe, a strong bullish candlestick closed above the support level, signaling a potential trend reversal or short-term upside move.
🔹 Trendline Support: On the 4H chart, price is respecting a clear ascending trendline, acting as dynamic support.
🔹 RSI Indicator: RSI is recovering from the oversold zone and showing signs of bullish momentum buildup, supporting a possible upward move.
🔹 200 EMA (Resistance): While the price is still trading below the 200 EMA, this trade targets a move toward that level as the next potential resistance.
🎯 Entry: Near 143.00
🛑 Stop Loss: Below 142.20 (just under recent wick lows)
✅ Take Profit: Around 144.80 (just before the 200 EMA)
Risk-to-reward ratio is favorable, and this setup aligns with higher-timeframe support and confirmation from bullish price action.
Trade closed: stop reached
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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.