USD/JPY Maximize Your Risk-Reward With This Simple Trick!In the end, what matters most in trading is risk reward ratio and win percentage. We can see here on USD/JPY some great indicators of a bearish price continuation. However, in itself that is not enough.
I suggest to maximize the risk reward ratio by waiting for the price to be closer to the top resistance line before entering with a trade. This will allow you to get a better RRR. In this trade set-up you can see from the chart how I created a 4 RRR trade idea.
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Japan
Don't Trade USD/JPY Before You Looked at These Factors!Trading is all about buying low and selling high. Here on this USD/JPY technical analysis I will explain what you need to take into account if you want to enter a trade.
First of all, I want to highlight the previous idea that was incredibly successful on USD/JPY using these same principles:
In this idea it is important to note that the price is not near any horizontal zone at the moment. I suggest to wait to get a better risk reward on your coming trade.
The buy low and sell principle is all relative and defined by the current information available. I define low and high as the horizontal resistance zones.
For our short position we want to reverse the logic and sell as high as we can, in this case near the zone of horizontal resistance.
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- Trading Guru
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Disclaimer!
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EURJPY Entry 124.292 Exit 122.517 Stop Loss 124.792EURJPY Entry 124.292 Exit 122.517 Stop Loss 124.792
Risk 50 Pips
Reward 177.5 Pips
R Multiple 3.55R
Risk $1000.00
Lotsize 2.111 (211,104)
Pip Value $9.4740
Risk $100.00
Lotsize 0.2111 (21,110)
Pip Value $0.94740
Risk $10.00
Lotsize 0.02 (2,111)
Pip Value $0.094740
RidetheMacro| USDJPY Outlook 2020.09.19📌the USD/JPY currency pair reached one and a half month lows this week at the middle of the 104th figure. In this price area, the southern momentum has faded and now traders are at crossroads: on the one hand – the weakening greenback which again began to lose its positions and on the other hand – the lack of weighty arguments for continuing the downward movement. The results of the September meeting of the Bank of Japan and the data published today on the growth of Japanese inflation did not provide any clarity as the USD/JPY pair continues to trade against the background of a contradictory fundamental picture.📈
🏦 the BoJ said in its Sept. 17 monetary-policy statement. “The pace of improvement is expected to be only moderate while the impact of COVID-19 🦠 remains worldwide.”
The Japanese economy shrank 7.9% on quarter in Q2 2020, compared with the preliminary reading of a 7.8% decline and market consensus of an 8.1% drop, and after a 0.6% fall in Q1. This was the third straight quarter of contraction and the steepest on record, amid the severe impact of the COVID-19 crisis. Private consumption tumbled, falling for the third straight quarter (-7.9% vs -0.7% in Q1)
📍 Any material shift in this regard may be exacerbated by a contraction in global growth, with capital flight into the dollar
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Ride the macro
ridethepig | Nikkei Market Commentary 2020.09.19📌 The Nikkei would have freed some space to the downside with a technical break last week, but given that we have not pierced the support line and buyers are still well-placed we must be wary of a retest in the highs of the multi year top at 24,000 - the same level we have been tracking since 2018!!
The more interesting notion comes from the Global Equity board with breaks being led by NY and following through with Europe on the quadruple witching flows.
A simple move here would be playing the breakdown for a quick test of the 200 day MA which is +/- 22,000 and on the other perhaps opening up the panic leg towards the lows at 20,300 if the rest of the flows play along. Any moves to the topside lack conviction and the RSI destroys all winning chances for buyers as we approach the highs.
Thanks as usual for keeping the feedback coming 👍 or 👎
GJ Potential Long PositionThe market is in an acending channel, with price showing strong rejection of the lower bound of the bullish channel. The downside potential of this market, is relatively low ceteris paribus, as the market would have to break structure to form a new price level below the current channel. The price has shown rejection at 3 key levels, indicating a three phase movement, thus 3 potential entry positions. It is likely that the market will continue to consolidate, as price tends to contract after large expansion(volatility) which can be viewed by the strong bearish momentum from the top of the channel. Continuing, entry after a re-test of this key level or strong bullish momentum would be advtangeous to maximise R:R as price is at the bottom of the channel and near an area of value as indicated by the 50EMA on the hourly time frame and confluencing the bearish trend line.
From a fundamentals perspective the pound has shown volatility due to a rise in the Claimant Count, increase in COVID-19 cases and operational/capacity problems with the NHS Track & Trace system. However, Japan is ushering in a new Prime Minister due to the departure of Shinzho Abe with Yoshihide Suga widely expected to take the role up. However, his poitical philisophies are unclear and he is entering the job at very uncertain times for Japan who have nearly exhausted their use of monetary policy tools to increase consumptions and a large fiscal stimulus package which has worried some due to its size and its impact on public debt. In short, both countries are in predicaments which should overall offset one another and allow the continuation of the bullish trend.
Warren Buffett Invests in Japan - Economic War 2020 - CurrencyAs the world watches the USA capital markets squeeze themselves into just 5 or 6 large cap, over-hyped, mania stocks (Tesla, Apple, Amazon, Google, Facebook, Microsoft, etc.), the richest (1%) are avoiding U.S. stocks altogether. Warren Buffett has just announced his buy-ins into Japan (over past 12 months). *Warren Buffett made gained his massive "unrealized" returns by accumulating stocks just after the great depression. He then held pretty much his entire lifetime. I don't believe Warren has an edge at all anymore. The world has moved lightyears ahead of what the baby boomer generation can generally comprehend. Sorry Warren, stash the cash, go enjoy your family. Your best days are behind you.
Invest in small cap USA or watch the USA struggle for years. Sad stuff. DON'T INVEST IN JAPAN LIKE WARREN. Don't live on leverage like the majority. Invest smart. CONTRARIAN.
INVEST IN $GNLN or other small cap USA companies. Go USA!!! #cannabis
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