Why you should not buy USDJPY yet
The long target in USDJPY is clear: it is the October 2022 high at around 152.00.
Nevertheless, the bulls' efforts to reach this target have not been crowned with success so far.
For weeks, the USDJPY has lacked the courage to finally push through to the long-awaited target.
Is it now time?
From our point of view, no.
The reason is that there is a lot of liquidity in the area around 147.00.
It is unlikely that the USDJPY will head straight for the high without picking up this liquidity.
Anyone going long now will inevitably have an unfavorable RRR and there is a high risk that the trade will be stopped out.
Our long scenario puts a buy limit order on the 147.00 area.
If this is picked up, we can set a sensible stop loss and enjoy a great RRR of around 3.3:1.
Nevertheless, the bulls' efforts to reach this target have not been crowned with success so far.
For weeks, the USDJPY has lacked the courage to finally push through to the long-awaited target.
Is it now time?
From our point of view, no.
The reason is that there is a lot of liquidity in the area around 147.00.
It is unlikely that the USDJPY will head straight for the high without picking up this liquidity.
Anyone going long now will inevitably have an unfavorable RRR and there is a high risk that the trade will be stopped out.
Our long scenario puts a buy limit order on the 147.00 area.
If this is picked up, we can set a sensible stop loss and enjoy a great RRR of around 3.3:1.
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.
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.