USD/JPY: Strategic Insights for Navigating Market Trends
👋 Hello everyone! I’m Skeptic, and this is my second analysis. Today, I will be analyzing the USD/JPY pair. In the daily timeframe, we can clearly see the strength of its bullish trend. If you’re interested in the conditions, risks, scenarios, and triggers I’ll discuss, I appreciate you staying with me until the end of the analysis.
Analysis
Let’s start with the major trend of USD/JPY. In the previous corrective leg, the price retraced up to 50% of the Fibonacci level. However, in the current corrective leg, it has only retraced to 23%, which may indicate the strength of the trend. 📈
Trend Analysis:
Trigger Analysis
Now, let’s move to the four-hour timeframe for our main trigger.
Four-Hour Chart:
Risk Management:
Maintaining proper capital management is vital for survival in financial markets.
If your maximum risk per position is 0.5%, you can fully risk that amount. If you observe signs of trend weakness, negative economic news, or any other factors that might increase your risk, adjust your risk percentage accordingly. 💡
Thank you for staying with me until the end of this analysis! ❤ Your support motivates me to provide more daily insights, allowing us to grow together in our trading journeys. If you have any questions or topics you’d like me to cover in future analyses, feel free to reach out. Let’s continue to learn and succeed together!✨
Analysis
Let’s start with the major trend of USD/JPY. In the previous corrective leg, the price retraced up to 50% of the Fibonacci level. However, in the current corrective leg, it has only retraced to 23%, which may indicate the strength of the trend. 📈
Trend Analysis:
- The daily chart shows that during the previous bullish trend’s correction, the price experienced significant declines.
- In the current corrective phase, the price has been moving sideways and even in the direction of the trend.
- Corrections in the direction of the trend are excellent indicators of trend strength and are often applicable in trading strategies.
- We can also observe a similar analysis using the RSI indicator. It’s worth noting that the daily support level at 156.226 has held well, stabilizing the price above it. If this support level is broken, we could anticipate a bearish scenario for the pair. ⚠️
Trigger Analysis
Now, let’s move to the four-hour timeframe for our main trigger.
Four-Hour Chart:
- We are witnessing a false breakout, and the price is still attempting to break through the resistance level at 158.070.
- For a long position, we should wait for a confirmed breakout and stabilization above this resistance level. 🚀
- Given the strong bullish trend, we can expect significant upward movement. However, it’s crucial to manage risk effectively for each position.
Risk Management:
Maintaining proper capital management is vital for survival in financial markets.
If your maximum risk per position is 0.5%, you can fully risk that amount. If you observe signs of trend weakness, negative economic news, or any other factors that might increase your risk, adjust your risk percentage accordingly. 💡
Thank you for staying with me until the end of this analysis! ❤ Your support motivates me to provide more daily insights, allowing us to grow together in our trading journeys. If you have any questions or topics you’d like me to cover in future analyses, feel free to reach out. Let’s continue to learn and succeed together!✨
Disclaimer
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