FX.co ★ Trading idea for the USD/JPY pair

USD / JPY is currently retracing by 50%, after growing rapidly from January 6 to January 11.

Taking this into account, now is the perfect time to open long positions, as such would surely instigate a price increase in the pair.

In fact, according to the daily chart, the quote has already formed a wave pattern (ABC), in which wave "A" is the upward movement observed in the past sessions. Therefore, today, long positions may be opened from 103.7-103.5, the limit of which is 103, while the targets are 104.4 and 104.7.

But even if the dollar is expected to increase against other world currencies, traders still need to be careful not to overload the deposit when distributing volumes between instruments.

Aside from that, risks are needed to be monitored to avoid losing money. Trading is very precarious, but also profitable if the approach used is correct.

For the above strategy, Price Action and Stop Hunting were used as trading methods.

Good luck