Long USD/JPY Trade
Updated
Hello fellow traders,
I would like to present a compelling long opportunity on USD/JPY, based on a combination of technical analysis and the analysis of the Dollar Index (DXY). As a trader who follows the smart money concept, I have identified several key factors that suggest an upward movement in the USD/JPY pair.
Break of Structure on 15-minute Chart:
On the 15-minute timeframe, I have observed a clear break of structure. This indicates a shift in the prevailing trend, with the price now showing signs of potential upward momentum. Such breakouts can often lead to significant price movements, offering a favorable risk-to-reward ratio for a long position.
Declining from Supply Zone on 1-hour Chart:
Zooming out to the 1-hour chart, the price action shows a decline from a significant supply zone. This implies that selling pressure has been weakening, and buyers might be gaining control. As the price exits the supply zone, it is likely to further bolster the case for an upward move in USD/JPY.
DXY (Dollar Index) Bullish Signals:
Adding to the bullish case for USD/JPY, I have carefully analyzed the Dollar Index across various timeframes, ranging from 4 hours to 15 minutes. The Dollar Index exhibits consistent bullish signs, indicating a potential increase in the value of the US dollar against other major currencies, including the Japanese yen.
Considering these technical factors aligning on both USD/JPY and the Dollar Index, I believe there is a high probability of the Japanese yen depreciating against the US dollar in the near term.
I would like to present a compelling long opportunity on USD/JPY, based on a combination of technical analysis and the analysis of the Dollar Index (DXY). As a trader who follows the smart money concept, I have identified several key factors that suggest an upward movement in the USD/JPY pair.
Break of Structure on 15-minute Chart:
On the 15-minute timeframe, I have observed a clear break of structure. This indicates a shift in the prevailing trend, with the price now showing signs of potential upward momentum. Such breakouts can often lead to significant price movements, offering a favorable risk-to-reward ratio for a long position.
Declining from Supply Zone on 1-hour Chart:
Zooming out to the 1-hour chart, the price action shows a decline from a significant supply zone. This implies that selling pressure has been weakening, and buyers might be gaining control. As the price exits the supply zone, it is likely to further bolster the case for an upward move in USD/JPY.
DXY (Dollar Index) Bullish Signals:
Adding to the bullish case for USD/JPY, I have carefully analyzed the Dollar Index across various timeframes, ranging from 4 hours to 15 minutes. The Dollar Index exhibits consistent bullish signs, indicating a potential increase in the value of the US dollar against other major currencies, including the Japanese yen.
Considering these technical factors aligning on both USD/JPY and the Dollar Index, I believe there is a high probability of the Japanese yen depreciating against the US dollar in the near term.
Note
Potential Liquidity Sweep:Moreover, my analysis suggests that there might be substantial liquidity placed just above the current price level. Institutional traders often place large buy orders ("liquidity pools") above important resistance levels. As the price approaches these levels, these orders are likely to get "swept" by market participants seeking to exploit the breakout, fueling further upward momentum.
It is important to note that all trading involves inherent risks, and it's crucial to implement appropriate risk management strategies. Therefore, I plan to open a long position on USD/JPY with careful consideration of my entry, stop-loss, and take-profit levels, taking into account the possible liquidity sweep area.
Please keep in mind that market conditions can change rapidly, so it's essential to stay vigilant and adapt the trade plan accordingly. Let's closely monitor the price action and market developments to make informed trading decisions.
Good luck and happy trading!
Trade closed manually
I do think that dollar index will be weakening and pulling back soon which will affect on price of USDJPY to go lowerNote
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