An emergence of a divergence in the USDJPY pair in a 1H timeframe signals a potential reversal to a bullish trend . Furthermore, I could see there was an evident falling wedge pattern that could be witnessed, signaling a possible opportunity to long the position
Strategy to approach this potential long trade for USDJPY: 1) Wait for the price to break previous LH. 2) Based on the calculation of lot size of 1.13, I would place a Buy stop on breakout point at 130.518 3) Stop Loss - 129.623 4) Keeping the risk/reward ratio to 1:1, I kept the Take Profit 1 level at 131.507
Strategy once Take Profit 1 is achieved: 1) Once Take profit 1 is achieved, I will revise the Stop loss level to the previous Take Profit 1 level i.e. 131.507 for breakeven. 2) For the 2nd leg of the trade my Take Profit 2 is 132.507
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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.