FX.co ★ Trading idea for USD/JPY

A very interesting situation is developing in USD / JPY. It is associated with the movement of the last two waves (A and B), shown in the screenshot below:

As we can see on the chart, the explosive growth in USD/JPY this year offset all the decline that happened last year. This means that dollar bulls are stronger than the bears, hence, they could pull the quote up from its current decline towards the 61.8% retracement level.

To be more specific, since the pair has a 3-wave pattern where wave A represents the buying pressure this year, bulls can open long positions and work for a 61.8% or 50% pullback from the current prices. Set stop loss at 104, and then take profit when the quote hits 111.

This plan follows the Price Action and Stop Hunting strategies.

Good luck!