USDJPY POTENTIAL LONG FORMATION IN PROGRESS
Updated
We have been looking at this pair and waiting for various patterns to form which will assist us
to form a basis for the potential direction of the pair. Our trades are based on the higher time frame
trend, being the weekly and monthly charts in order to avoid excessive noise of the lower time
frames. We can see that the pair remains bullish despite the pair showing bearish price action on
the lower time frames, hence we are only looking for buying opportunities until further notice.
With this being said we have managed to spot a buying opportunity due to the following reasons
listed below:
1: Trendline breakout
2: Double bottom pattern formation.
We are still waiting for two more confluence factors to form before we consider looking for entries.
These have been listed below:
1: Key-level breakout which signals a change in market structure from bearish and bullish
2: Entry will be on a retest of key level area.
to form a basis for the potential direction of the pair. Our trades are based on the higher time frame
trend, being the weekly and monthly charts in order to avoid excessive noise of the lower time
frames. We can see that the pair remains bullish despite the pair showing bearish price action on
the lower time frames, hence we are only looking for buying opportunities until further notice.
With this being said we have managed to spot a buying opportunity due to the following reasons
listed below:
1: Trendline breakout
2: Double bottom pattern formation.
We are still waiting for two more confluence factors to form before we consider looking for entries.
These have been listed below:
1: Key-level breakout which signals a change in market structure from bearish and bullish
2: Entry will be on a retest of key level area.
Note
Price is currently hovering above our key level. We will be waiting for a day close before we can confirm the setup and then start looking for entries.Note
The setup has been confirmed by the daily close. We will now wait for the price to revert to around our key level area and see how the price reacts.Trade active
It has taking exactly one week for our entry rules to be met. We plan to hold this trade until the middle of May.Note
Take profit level nearingTrade closed: target reached
Profit of 9.5% using risk management of 2% per trade.
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