FX.co ★ Trading tips for USD/JPY

The bearish trend in USD/JPY broke as soon as the quotes hit 136. However, after a sharp rise, the pair went back to the 50% retracement level.

The current situation presents a great opportunity to open long positions, especially since there is a three-wave pattern, in which wave A represents the bullish pressure this week. This means that traders can enter the market by buying from the 50% retracement level or from a false breakdown of 136, then set stop-loss at 134 or after the false breakout of 136. Exit by taking profit upon a breakout around 138.0 and 142.5.

This trading idea is based on the "Price Action" and "Stop Hunting" methods.

Good luck and have a nice day! Don't forget to control the risks.